Wheat Red at Close

At the close for the midweek session wheat prices were double digits in the red. For CBT SRW wheat the board went home 12 1/2 to 14 cents in the red. KC wheat futures closed with 9 3/4 to 13 3/4 cent losses. Spring wheat futures ended the day down by 5 1/4 to 7 3/4 cents for old crop. New crop spring wheat closed fractionally lower. USDA did up the average cash price for wheat by a dime to $7.15.  

USDA’s winter wheat plantings data had 34.397m acres planted for the 22/23 year. The trade was looking for 34.3 on average. Much of the increase was for SRW which was 400k acres above the average trade guess and 400k acres above last year at 7.07 million. HRW acres were reported at 23.8m where the trade had anticipated 24m acres flat. 

Wheat stocks were 1.390bbu on December 1st. The trade was looking for 1.415 bbu. As for MY ending stocks, the USDA’s WAOB forecasts 628 mbu of wheat will carry into 22/23. That is a 30 mbu bump from December’s figure. The average trade guess was for an 11 mbu boost. Digging deeper into the domestic data, USDA cut feed and residual by 25 mbu to 110. Exports were trimmed by 15 mbu to 825 mbu and are now 167 mbu below 2020/21. The export trim was exclusive to HRW, which is now forecasted at 335 mbu. 

The WAOB division raised global wheat production by a net 700k MT, with Argentina 500k MT higher. World wheat exports were trimmed by 1 MMT, reflecting the U.S. cut and a 1 MMT cut to Russian exports. The EU picked up some with a 500k MT boost to 37.5 MMT. Global wheat stocks were figured at 279.95 MMT. That was up from 278.2 MMT last month, but was inline with pre-report estimates. 

Going into the weekly Export Sales report, the trade is looking for wheat bookings between 150k and 400k MT for the week that ended 1/6. New crop wheat sales are estimated below 50k MT according to survey respondents. 

Mar 22 CBOT Wheat  closed at $7.57 3/4, down 12 1/2 cents,

Cash SRW Wheat  was $7.17 5/8, down 12 5/8 cents,

Mar 22 KCBT Wheat  closed at $7.78, down 13 3/4 cents,

Cash HRW Wheat  was $7.59 1/4, down 13 3/4 cents,

Mar 22 MGEX Wheat  closed at $9.20 1/2, down 7 3/4 cents,