Wheat Continues Descent on Tuesday

The wheat complex continues to be controlled by the bears, as all three exchanges were pressured lower on Tuesday. Chicago contracts were down 8 ¾ to 12 cents at the close. Kansas City futures were 5 ½ to 10 cents lower as the final bell rang. MPLS spring wheat contracts were down 9 ¼ to 12 cents in most relevant contracts.

NASS pegged winter wheat conditions up another 3% to 42% gd/ex, with the Brugler500 7 points higher to 342. The spring wheat crop conditions were weaker, down 5% to 71% gd/ex, as the Brugler500 was down 6 points to 373. By state, ND was down 14 points, with MN losing 12 points.

All wheat acres are expected to be up 159,000 acres from the March Intentions report at 47.657 million acres. Winter wheat is seen up just 64,000 acres at 34.197 million acres. Spring wheat is seen steady at 11.34 million acres

June 1 stocks of wheat are projected to be 684 mbu according to a trade survey of analysts by Reuters. That is just 4 mbu below the June WASDE projection for US wheat ending stocks (also June 1 stocks), but 134 mbu above last year.

Egypt’s GASC purchased 470,000 MT of wheat in Tuesday’s tender, with 180,000 from each Russia and Romania, 60,000 MT from Ukraine, and 50,000 MT bought from Bulgaria. Algeria is also in for wheat, with the tender closing on Wednesday. 

Jul 24 CBOT Wheat  closed at $5.41 3/4, down 10 3/4 cents,

Sep 24 CBOT Wheat  closed at $5.60 1/2, down 10 1/2 cents,

Jul 24 KCBT Wheat  closed at $5.76, down 5 1/2 cents,

Sep 24 KCBT Wheat  closed at $5.81 1/2, down 6 cents,

Jul 24 MGEX Wheat  closed at $5.95 3/4, down 9 1/2 cents,

Sep 24 MGEX Wheat  closed at $6.03 1/2, down 9 1/4 cents,