Wheat Down by Double Digits

Monday’s wheat trading shows double digit losses at midday. SRW futures are down 3% with 20 to 21 1/2 cent losses. The HRW futures are 2.5% lower with 19 to 20 1/4 cent losses. Spring wheat futures are down by 0.8% to 1.4% on 6 to 11 3/4 cent losses for the day. 

Ukraine is registering ships willing to pass through the Black Sea under the protection of the Ukrainian Armed Forces. The corridors are an attempt to resume shipment flows after the corridor initiative brokered between Russia, Turkey, U.N., and Ukraine lapsed in July. Russia has not guaranteed safe passage, and has publicly announced they will treat vessels in the Black Sea as potentially carrying military supplies. Separately, Russia fired warning shots at a Palau flagged dry freight vessel heading into Ukraine, before forcibly boarding said vessel for an inspection – no injuries or damage occurred and the vessel was later allowed to finish it’s route. 

The weekly Export Inspections report had 183,289 MT of wheat shipments for the week that ended 8/10. That was down from 293k MT last week and from 390k during the same week last year. The season’s pace reached 3.217 MMT and trails last season by 683k MT or 17.5%. 

USDA’s trimmed US production 5 mbu to 1.734 bbu on Friday.  By class, most of the losses came in the North via spring and white, while HRW and SRW were increased relative to July. Usage was 28 mbu less, mainly via exports. Stocks were reported at 615 mbu, compared to the 6 mbu increase expected. The WAOB cut global wheat carryout 920k MT to 265.6 MMT. 

Sep 23 CBOT Wheat  is at $6.07 3/4, down 19 cents,

Dec 23 CBOT Wheat  is at $6.33 3/4, down 20 cents,

Cash SRW Wheat  is at $5.40 1/8, down 19 cents,

Sep 23 KCBT Wheat  is at $7.36 3/4, down 19 cents,

Cash HRW Wheat  is at $6.75 1/2, down 19 1/4 cents,

Sep 23 MGEX Wheat  is at $8.04 1/2, down 10 1/2 cents,