Wheat prices are starting mostly lower so far in early Friday market activity, though the nearby Chicago markets are 1 to 2 ½ cents higher. Front month wheat futures ended Thursday 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. Traders had been leaning toward a tighter number.
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.
StatsCan’s Grain Stocks report 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, currently up 2 1/4 cents
May 24 CBOT Wheat closed at $5.94, down 14 cents, currently up 15 cent
Mar 24 KCBT Wheat closed at $6.01, down 17 1/4 cents, currently down 5 cents
Mar 24 MGEX Wheat closed at $6.83 3/4, down 12 1/2 cents, currently down 2 cents
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