Wheats Red at Midday

Front month wheat futures are working lower through midday from 4 cent losses into the report release. Current CBT quotes are down 2 cents. KC wheat futures are down by 1 1/2 to 8 cents red. Spring wheat is trading mixed within 5 cents of UNCH.  

USDA’s monthly S&D outlook upped the acreage by 200k to both planted and harvested, but trimmed back the yield. On net production lost 5 mbu to 1.734 bbu. By class, USDA’s NASS had HRW output 7.1 mbu higher and over the trade average guess, SRW 17.8 mbu higher and over the high end of estimates, winter white 5.1 mbu lower near the low end of estimates, and spring wheat 29 mbu lower and near the low end of estimates. From the WASDE the usage was 28 mbu less mainly via exports to 700 mbu. Stocks were reported at 615 mbu, compared to the 6 mbu increase expected. 

The WAOB cut Canadian wheat output by 2 MMT, and cut the EU by 3 MMT, however Ukraine was raised by 3.5 MMT. Global trade was reduced, for a net 2/10ths lower U.S. market share of 9%. Global wheat carryout was reported at 265.6 MMT, 920k MT tighter than in July and near the trade average guess. 

Sep 23 CBOT Wheat  is at $6.36, down 1 3/4 cents,

Dec 23 CBOT Wheat  is at $6.62 1/4, down 1 1/2 cents,

Cash SRW Wheat  is at $5.69 5/8, down 1 3/4 cents,

Sep 23 KCBT Wheat  is at $7.63, down 4 cents,

Cash HRW Wheat  is at $7.01, down 4 1/4 cents,

Sep 23 MGEX Wheat  is at $8.21 1/4, up 4 1/4 cents,