Double Digit Drop in Wheat Faded Monday Strength

Turnaround Tuesday selling pulled the market back following the sharp Monday rally. At the close CBT wheat futures were 17 3/4 to 22 1/2 cents in the red. KC wheat ended the day 3 3/4 to 14 3/4 cents lower in the front months. Front month spring wheat went home with 9 1/2 to 13 cent losses. First Notice Day for Sep futures begins the delivery process at the settle tomorrow. 

A survey from Farm Futures put 22/23 winter wheat area near 36.553m acres. That would be a 7.5% boost yr/yr if realized this fall. Total wheat area is only expected to increase 3.9% to 48.842m acres as spring wheat is expected to drop ~700k. 

Dryness in Chinese rice areas is thought likely to result in a greater drawdown on Chinese wheat stocks for food use. USDA had China holding 54% of all 2022/23 global wheat ending stocks in their August WASDE report. 

The heat wave in Europe has Romania’s wheat crop 15% below last year near 9 MMT. 

Sep 22 CBOT Wheat  closed at $7.98 1/4, down 21 3/4 cents,

Dec 22 CBOT Wheat  closed at $8.20 1/4, down 22 1/2 cents,

Cash SRW Wheat  was $7.42, down 19 cents,

Sep 22 KCBT Wheat  closed at $9.08 3/4, down 3 3/4 cents,

Cash HRW Wheat  was $8.63, down 5 cents,

Sep 22 MGEX Wheat  closed at $9.04 1/2, down 13 cents,