Wheat Trying to Bounce

The wheat complex is trading fractionally to 4 cents higher this morning. The market continues to be controlled by the bears, as all three exchanges were lower again on Tuesday. Chicago contracts were down 8 ¾ to 12 cents at the close. Kansas City futures were 5 ½ to 10 cents lower. MPLS spring wheat contracts were down 9 ¼ to 12 cents in most relevant contracts.

NASS showed improved winter wheat conditions,  up 3 points from the previous week 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 about 159,000 acres from the March Intentions report on Friday, at 47.657 million acres. Winter wheat is seen up just 64,000 acres at 34.197 million acres. Spring wheat ideas are running 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 each from Russia and Romania, 60,000 MT from Ukraine, and 50,000 MT bought from Bulgaria. Algeria is also in the market for wheat, with the tender closing on Wednesday. 

Jul 24 CBOT Wheat  closed at $5.41 3/4, down 10 3/4 cents, currently up ½ cents

Sep 24 CBOT Wheat  closed at $5.60 1/2, down 10 1/2 cents, currently up 1 ¼ cents

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

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

Jul 24 MGEX Wheat  closed at $5.95 3/4, down 9 1/2 cents, currently up 3 ½ cents

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