Wheat Slipping Lower, Despite a Few Friendly USDA Numbers

Wheat futures are down double digits at Wednesday’s midday, despite some friendlier US revisions. Chicago futures are down 10 to 12 cents, led by the front months. KC HRW is down 16 to 18 cents in the nearby contracts.  MPLS spring wheat futures are down 12 to 13 cents.

In this morning’s WASDE report, the USDA punted on the 23/24 US wheat carryout projection at 688 mbu, as they wait for the NASS Grain Stocks report to give them the final tally on June 28. They did revise the cash average price a dime lower to $7.00. The new crop numbers did see several adjustments, starting with production, which was raised by 17 mbu to 1.875 bbu, all to the HRW category. They raised projected exports by 25 mbu to 800 mbu. That helped to take the projected ending stocks total to 758, an 8 mbu cut. Cash average price was raised by 50 cents to $6.50.

The world ending stocks were raised by 1.76 MMT to 259.56 MMT for the 23/24 number. However the new crop saw several adjustments, taking projected stocks down 1.34 MMT to 252.27 MMT. Both old and new crop were not trimmed by as much as the trade had expected. Much of that was due to a 5 MMT cut to the Russian crop at 83 MMT, with Ukraine also down 1.5 MMT to 19.5 MMT.

Jul 24 CBOT Wheat  is at $6.16 1/4, down 10 1/4 cents,

Sep 24 CBOT Wheat  is at $6.35, down 11 3/4 cents,

Jul 24 KCBT Wheat  is at $6.37, down 18 cents,

Sep 24 KCBT Wheat  is at $6.49 1/2, down 16 1/2 cents,

Jul 24 MGEX Wheat  is at $6.66 3/4, down 12 cents,

Sep 24 MGEX Wheat  is at $6.77, down 12 1/4 cents,

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.