Wheat Markets 1 to 3 Higher

Following the double digit gains from Wednesday, moves, wheat markets are another 1 to 3 cents higher. Black Sea wheat futures traded the highest price since June 4 on concerns about poor yields in early harvested Russian fields. Chicago SRW futures closed yesterday’s session 17 1/4 to 25 1/4 cents higher. HRW futures were up by 13 3/4 to 16 cents. HRS wheat futures closed 9 1/2 to 10 3/4 cents higher. The SRW premium over corn widened, after the narrowest spread since March 16 on Monday. Currently its near $1.50/bushel, still no substitution threat in most of the world. July to July peaked on April 21 at ~ $2.40/bu. USDA’s weekly Export Sales report is estimated to show between 200,000 and 550,000 MT of wheat sales. Day 16 of the KS wheat harvest reported yields were 20 bpa to 55 bpa, with most in mid to upper 40s. Traders estimate USDA will increase 19/20 world ending stocks 1.5 MMT to 297.3 MMT on Friday. IKAR lowered their Russian new crop wheat production forecast by 1.5 MMT to 78 MMT. The French Farm Ministry released their initial wheat production forecast of 31.31 MMT. If realized that would be a 21% drop yr/yr. The ministry attributed dryness and poor weather for the low forecast.

--- provided by Brugler Marketing & Management

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