Tuesday Wheat Trading Adds Double Digits

The wheat market extended the bounce on Tuesday with front month futures closing another double digits higher. Futures were off their midday highs at the bell. CBT SRW futures ended the day 12 1/4 to 13 3/4 cents in the black in the front month contracts. KC HRW futures went home 12 1/4 to 17 1/4 cents higher. Nearby spring wheat futures closed Tuesday with 10 3/4 to 12 cent gains. 

Wire stories suggest Egypt booked 240k MT of Russian wheat in a direct purchase without a public tender. 

The Ukrainian Grain Association reduced their outlook for the 2022 wheat crop by 8.7% from their prior estimate to 19 MMT. The cut came via reduced harvestable area given the ongoing war and destruction. Kazakhstan’s harvest is underway, reaching 14% completion and 3.3 MMT of grain as of 8/23. 

Despite dryness to finish the crop, Germany’s DBV farm lobby estimates winter wheat output at 21.8 MMT up from 21 flat last year. Canada’s Agriculture and Agri-Food lifted their projection for Canada by 786k MT to 34.5 MMT for the 2022 wheat crop. 

Sep 22 CBOT Wheat  closed at $7.82 3/4, up 12 1/4 cents,

Dec 22 CBOT Wheat  closed at $8.00 1/2, up 12 1/4 cents,

Cash SRW Wheat  was $7.24 1/2, up 12 1/2 cents,

Sep 22 KCBT Wheat  closed at $8.82 1/2, up 17 1/4 cents,

Cash HRW Wheat  was $8.37 3/4, up 17 1/4 cents,

Sep 22 MGEX Wheat  closed at $9.00, up 11 1/2 cents,