Wheat Higher Overnight

Wheat prices are up anywhere from 8 to 16 ¼ cents after overnight buying continued. At the close for Wednesday, wheat prices had added more than 1% to the upside. Chicago SRW futures were 6 1/4 to 7 cents higher nearby, with new crop rallying 9 to 9 1/2 cents. KC HRW futures gained 11 to 13 3/4 cents on Wednesday. Spring wheat futures went home on report day with 9 1/2 to 14 3/4 cent gains. Wheat’s cash price from the report was 15 cents higher to $7.30/bu. 

Pre report estimates for the weekly Export Sales report are for wheat bookings to come in between 100k and 400k MT during the week that ended 2/3. New crop bookings are expected to be less than 300k MT. 

USDA’s monthly S&Ds trimmed back 5 mbu from the domestic food and seed categorical usage, and 15 mbu from exports. 10 million bushels of that was trimmed form HRW, now at 325 mbu, and the other 5 was durum. That was a 20 mbu bump to carryout which is now forecasted at 648 mbu. The trade was looking for a 5.8 mbu bump to 633.8 mbu ahead of the report. 

Global wheat stocks were reported 1.74 MMT tighter than the Jan figure at 278.21 MMT. The average pre report estimate was to see 280.3 MMT. Most major global players were left UNCH with a 500k MT export boost to Argentina, a 200k MT boost for Canada, and a 200k MT cut for Ukrainian shipments. Chinese imports were left UNCH at 9.5 MMT. 

StatsCan data showed Dec 31st wheat stocks were 15.56 MMT, compared to last year’s 25.09 MMT inventories. Durum stocks specifically were down 56% to 2.09 MMT. Russia’s grain export quota begins February 15th through June, and officials have granted 206 traders a share of the limited quantity. IKON Commodities sees Australian wheat output reaching a record 39 MMT for the 21/22 season. That left 25.5 MMT for their export program. 

Mar 22 CBOT Wheat  closed at $7.85, up 6 1/4 cents, up 8 ¼ cents this morning

Cash SRW Wheat  was $7.45 1/4, up 6 3/4 cents,

Mar 22 KCBT Wheat  closed at $8.15, up 13 3/4 cents, up 8 ¾ cents this morning

Cash HRW Wheat  was $7.95 3/8, up 13 3/8 cents,

Mar 22 MGEX Wheat  closed at $9.53 3/4, up 13 1/4 cents, up 13 cents this morning