Wheat Futures Down Double Digits

The midday SRW wheat market is trading 2.5% to 3% in the red with 17 to 20 cent losses. KC HRW futures are also in the red by 20 cents. Spring wheat futures are 1.4% lower so far with 12 to 15 cent losses across the front months. The cash average price fell by 20 cents from the June WASDE to $7.50. 

USDA’s WASDE saw fit to raise old crop feed and residual by 31 mbu but cut exports by 16 mbu to fit the 18 mbu tighter June stocks number of 580 mbu carryout. For new crop, USDA raised production to 1.739 bbu from 1.665 bbu last month and 1.686 bbu expected. Total winter wheat was upped by 70 mbu with 52 for HRW and 20 for SRW. Spring wheat was reported at 478.6 mbu vs the average trade guess of 476. New crop usage from the S&D tables saw a 20 mbu increase to feed and residual for a net 30 mbu looser carryover vs June and matching the trade average guess. 

Globally, USDA cut production by 3.52 MMT as Argentina, Canada and the EU losses were offset by the increase for U.S. Global wheat stocks were 4.18 MMT tighter than the June report at 266.53 MMT. The trade was looking for a 269.5 MMT on average. 

Jul 23 CBOT Wheat  is at $6.29 1/2, down 20 cents,

Sep 23 CBOT Wheat  is at $6.36 3/4, down 23 3/4 cents,

Cash SRW Wheat  is at $5.78 7/8, down 23 3/4 cents,

Sep 23 KCBT Wheat  is at $7.94 1/2, down 22 1/2 cents,

Cash HRW Wheat  is at $7.49, down 22 1/2 cents,

Sep 23 MGEX Wheat  is at $8.48 1/4, down 15 3/4 cents,