AM Wheat Trades Weaker

Wheat prices are trading in the red after a ~10c overnight range saw action on both sides of UNCH. SRW wheat futures ended Monday with a 3.3% gain in the Dec contract, and with 17 cent gains for the other front months. A big SRW sale to China boosted that wheat class. KC HRW futures settled the Monday session 10 to 11 ¼ cents in the black. Spring wheat was mostly left out as gains were limited to 6 ¼ cents. 

Delivery notices against KC December dropped to only 5 contracts overnight. Chicago deliveries totaled 228 spread over 8 stoppers. 

The weekly Export Inspections report had 187,955 MT of wheat shipments for the week ending 11/30. That compared to 288k MT last week and 342k MT from the same week last year. USDA had the season total at 8.324 MMT as of 11/30, down from 10.917 MMT last year. 

USDA’s monthly S&D reports on Friday are expected to show the wheat carryout 100k bushels looser to 684.1 mbu, basically a rounding error vs. unchanged. The global situation is expected to loosen by 200k MT on average. 

Wheat production in Canada was shown at 31.954 MMT in StatsCan’s data release. Traders were looking for between 29.3 and 32.3 MMT going into the report, with 31.1 as the average estimate. By class, StatsCan showed a 4.04 MMT durum crop (below the 4.5 MMT average trade guess), a 24.76 MMT spring wheat crop (24 expected), and a 3.15 MMT winter wheat crop. 

Egypt’s GASC is tendering for wheat to import, with results expected later today. 

Dec 23 CBOT Wheat  closed at $5.95 3/4, up 18 3/4 cents, currently up 2 1/4 cents

Mar 24 CBOT Wheat  closed at $6.20 1/2, up 17 3/4 cents, currently down 1 1/4 cents

Cash SRW Wheat  was $4.75 5/8, up 11 5/8 cents,

Mar 24 KCBT Wheat  closed at $6.57 3/4, up 11 cents, currently down 1 1/2 cents

Cash HRW Wheat  was $5.47 3/8, up 5 1/4 cents,

Mar 24 MGEX Wheat  closed at $7.36 1/4, up 6 cents, currently down 3 1/2 cents