Wheats Rally through Wednesday

Wheat futures ended the midweek session with gains. Chicago wheat closed up by 7 ½ to 9 ½ cents. KC HRW prices were double digits higher on gains of as much as 14 cents. The spring wheat futures were 7 ½ to 8 ½ cents stronger at the close.  

Weekly Export Sales estimates range from 250k MT and 600k MT for wheat for the week that ended 9/7. 

FranceAgriMer reduced their export forecast 300k MT to 17.2 MMT. The European Commission reported 5.84 MMT have been shipped from EU to non-EU destinations as of 9/8. That is down from 8 MMT last year. Ukraine’s Ag Minister reported 5.4 MMT of grains have been shipped for the season through 9/13. That is 7.5% behind last year’s pace. 

The WASDE report had no changes for the US balance sheet, though 10 mbu of HRW exports were shifted to HRS. As a whole, domestic output was left at 1.734 bbu and carryout was maintained at 615 mbu. World changes yesterday included a 6 MMT cut in estimated production (-3 Australia, -2 Canada, -1 MMT for each Argentina and the EU, and +1.5 for Ukraine). Wheat carryout was 7 MMT tighter, to 267 MMT - the tightest in 8 years and the stocks/use ratio would be a 9 year low. The stocks/use ratio ex-China remains the tightest since 2007/08.

Sep 23 CBOT Wheat  closed at $5.69, up 8 3/4 cents,

Dec 23 CBOT Wheat  closed at $5.97 1/4, up 9 3/4 cents,

Cash SRW Wheat  was $5.09 1/2, up 9 3/4 cents,

Dec 23 KCBT Wheat  closed at $7.44 3/4, up 14 cents,

Cash HRW Wheat  was $6.72 1/4, up 14 cents,

Dec 23 MGEX Wheat  closed at $7.87 1/2, up 8 1/2 cents,