Mixed Midday for Wheat

Ahead of the MLK Jr Day break, wheat futures are trading both directions on Friday. SRW prices are 2 to 4 1/4 cents lower, while HRW futures are up by as much as 6 1/2 cents. Spring wheat is mixed with old crop losses of as much as 4 3/4 cents as new crop HRS is fractionally higher. 

Turkey booked +550k MT of wheat via tender, likely to be sourced via the Black Sea. Japan booked 89,735 MT of wheat from U.S. and Canada. Both South Korea’s MFG and NOFI booked 130k MT of feed wheat via an international tender. 

The IGC reported their Jan wheat estimates for a 796 MMT global crop. That is 5 MMT higher from their December estimate reflecting an increase to both Australia and the Ukraine offset by trims to Argentina and Canada. The IGC’s wheat carryout was down by 1 MMT to 281 MMT. 

USDA has winter wheat planted area at 36.95m acres, up from 34m acres last season and 34.5m expected. The full range of estimates was capped at 36.2m acres. 

USDA’s monthly WASDE saw 29 mbu increase to the beginning stockpile, but raised domestic use by 33 mbu. That set the carryout estimate 4 mbu lighter at 567 mbu. 

The global picture saw Ukraine production each upped by 500k MT to 21 MMT and 13 MMT respectively. The global wheat output is 781.31 MMT. Ending stocks were shown at 268.39 MMT from 267.33 MMT last month, but the world minus China is figured at 124.3 MMT of wheat carryout.  

USDA’s weekly Export Sales report showed 90,803 MT of wheat was sold for the week that ended 1/05. That was an increase from the week prior’s MY low, but was still down 66% from the same week last year. Accumulated commitments were 15 MMT, which is 6.7% behind last year’s pace – compared to the WASDE expected full year lag of 3.1%. 

Mar 23 CBOT Wheat  is at $7.39 3/4, down 3 cents,

May 23 CBOT Wheat  is at $7.47 1/2, down 3 1/4 cents,

Cash SRW Wheat  is at $6.83 3/8, down 3 cents,

Mar 23 KCBT Wheat  is at $8.41 1/4, up 6 1/4 cents,

Cash HRW Wheat  is at $8.06 1/8, up 6 1/4 cents,

Mar 23 MGEX Wheat  is at $9.09 1/2, down 2 3/4 cents,