Wheat Heading Lower Following the USDA Release

The wheat complex is trading lower at midday after a more bearish than expected US stocks number was released. Chicago is 6 to 7 cents lower, with KC down 6 to 8 cents. MPLS spring wheat is down 7 to 10 cents at midday.

Export Sales data showed all wheat bookings at just 80,720 MT, which was a sharp climb from last week, but still in the middle of the trade range of estimates. New crop sales, however, were on the high end, at the 2nd larger weekly total this MY of 274,390 MT. On a separate note, Japan’s MOA purchased 121,485 MT of US, Australian, and Canadian wheat in their weekly tender, with 27,470 MT US specific. 

USDA’s WASDE update this morning had a 25 mbu hike to the US carryout number for 23/24 on a drop to the feed & residual use. It was pegged at 698 million bushel and above the average trade estimate (690 mbu). World stocks were tightened 0.47 MMT to 258.27 MMT this morning, mainly a 2.1 MMT drop in Indian stocks on higher domestic use. EU stocks were up 1.52 MMT on a cut to the export figure. Actual Ukrainian wheat exports have reached 14.5 MMT since July 1.  In this mornings update, USDA hiked full year (June 1 to May 31) shipments by 1.5 to 17.5 MMT. 

May 24 CBOT Wheat  is at $5.52, down 6 1/2 cents,

Jul 24 CBOT Wheat  is at $5.66 3/4, down 6 3/4 cents,

May 24 KCBT Wheat  is at $5.86 1/4, down 8 1/4 cents,

Jul 24 KCBT Wheat  is at $5.81 1/2, down 6 1/4 cents,

Jul 24 MGEX Wheat  is at $6.50 1/4, down 8 3/4 cents,

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