Wheat Giving Back Double Digits for Turnaround Tuesday

Midday wheat prices are down by as much as 3% in Chicago on a double digit turnaround Tuesday drop. KC prices are down by 10 to 11 ¼ cents so far. Spring wheat futures are trading 7 ¼ to 8 ¾ cents in the red at midday. 

Individual state reports saw crop conditions get a little worse over the last week, as gd/ex ratings in TX were down 3% to 43%, with OK down 5% to 65%, and KS 4% lower to 53%. That dropped their respective crop ratings on the Brugler500 scale by 7 for TX and OK to 312 and 364, with KS down 3 to 338. Winter wheat fields in the ECB will get residual moisture from the N.E. coastal snows and the heavy Gulf rains. Southern IL through Southeastern OH are expected to get 2-2 1/2” of rainfall equivalent precip in the updated 7-day QPF from NOAA. 

Ahead of the WASDE report, trader expectations average to see USDA to tighten wheat stocks by 200k bushels to 657.8 million. That comes as some responses were for a cut of as much as 18 mbu and some were to see an increase of as much as 24 mbu. Global wheat carryout is expected to tighten by 1.3 MMT. 

Weekly wheat exports were 353,137 MT via the export inspections report. That was down from 482k MT last week and was similar to the volume during the same week last year. SRW was the bulk of the week’s export with over 115k MT of the total. Mexico was the top destination, though China was #2 with 59k MT shipped there during the week. The accumulated wheat exports reached 12.97 MMT vs 15.65 MMT at this point last year. 

Mar 24 CBOT Wheat  is at $5.47 1/2, down 16 cents,

May 24 CBOT Wheat  is at $5.46 1/2, down 17 1/2 cents,

May 24 KCBT Wheat  is at $5.69 3/4, down 10 1/2 cents,

May 24 MGEX Wheat  is at $6.51, down 8 1/2 cents,