Front month wheat futures ended the day with double digit losses of over 2% across all three domestic classes. Chicago was 13 to 14 cents lower and are now sub-$6 through Sep. KC futures ended the day 15 ¼ to 17 ¼ cents weaker, also sub $6 in the May and July contracts. Spring wheat futures settled 12 cents lower on the day.
USDA’s monthly wheat S&D update lowered domestic food use by 10 mbu and added it to stocks for a 658 mbu carryout. The trade was looking for a slightly tighter carryout on average.
Globally, USDA’s WAOB raised the wheat production by 830k MT to 785.74 MMT. Trade was raised by 1.15 MMT with Ukraine, Australia, and Argentina grabbing most of the increase. Chinese wheat imports were cut by 500k MT in the update. On net, carryout was 590k MT tighter compared to the expected 500k MT.
The weekly wheat bookings were shown at 378.4k MT compared to the 275k to 550k MT expected range. Wheat commitments were up to 17.25 MMT, a 5.8% lead over last year’s pace. USDA included 8.1k MT of new crop sales which left the forward book at 283k MT.
Japan issued a regular weekly tender seeking 136k MT of wheat from U.S., Canada, and Australia. Results are expected later today.
StatsCan’s Grain Stocks report from this morning for December 31 showed all wheat stocks at 20.68 MMT. That was on par with the average trade guess of 20.7 MMT of wheat and down 10.3% vs. last year.
Mar 24 CBOT Wheat closed at $5.88 1/2, down 13 1/2 cents,
May 24 CBOT Wheat closed at $5.94, down 14 cents,
Mar 24 KCBT Wheat closed at $6.01, down 17 1/4 cents,
Mar 24 MGEX Wheat closed at $6.83 3/4, down 12 1/2 cents,
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