Projected world stocks/use ratios at the end of the marketing year are still seen tightening, but demand isn’t strong enough to sustain rallies. Tuesday was another example, with a mid-morning rally failing and prices modestly lower at the close. Kansas City closed 8 to 10 ½ cents lower. Chicago contracts were down 7 ½ to 9 ¼ cents. MPLS spring wheat futures did rebound, settling a penny higher in old crop May, and 1 ¼ to 3 ½ lower for the other contracts.
The 7-day forecast is calling for 1-2+ inches of rain for much of the SRW region and creeping over to portions of the eastern half of the Central Plains for the next week. The weekly USDA Crop Progress report showed crop conditions steady at 56% gd/ex, with the Brugler500 index at 348. There was some shift in ratings by state, with KS improving 3 points to 338, and TX down 3 to 324.
Monthly WASDE data will get an update on Thursday, with the trade expecting an increase after the larger than expected March 31 stocks totals. The average trade estimate is 690 mbu, which would be a 17 mbu hike from the March balance sheet update. The range is from 670 mbu to 723 mbu. For the world number, traders are estimating a 0.4 MMT increase to 259.2 MMT.
Japan’s Ministry of Ag has issued a tender to buy 121,485 MT of wheat from the US, Canada and Australia, with 27,470 MT US specific. Results for the tender are expected on Thursday morning.
May 24 CBOT Wheat closed at $5.57 3/4, down 8 cents,
Jul 24 CBOT Wheat closed at $5.72, down 8 1/2 cents,
May 24 CBOT Wheat closed at $5.77 1/4, down 8 cents,
Jul 24 CBOT Wheat closed at $5.74 1/4, down 10 1/4 cents,
Jul 24 CBOT Wheat closed at $6.57 3/4, down 1 1/4 cents,
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Disclosure Policy here.
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