Wheat Mixed At Midday

Wheat is mixed after Chinese buying alongside of the USDA report. SRW futures are up double digits with gains of as much as 16 3/4 cents in July. HRW futures are down by 2 to 5 1/2 cents. MPLS spring wheat futures are fractionally higher at midday. USDA announced a private export sale of 190k MT HRS and 130k MT of HRW to China this morning. Wheat production numbers were bullish relative to June, and exceeded trade expectations. USDA’s July estimate for winter wheat production is 1.218 bbu, down by 48 mbu, trade was looking for an 18 mbu cut. That came via a 33 mbu cut to HRW and a 17 mbu cut for SRW production, traders were looking for 11 and 7 respectively. Spring wheat production was estimated at 550 mbu, which was above the trade average guess of 546. In total 2020/21 U.S. wheat production is forecasted at 1.824 bbu. U.S. ending stocks for 2020/21 are forecasted at 942 mbu, that is up 17 mbu from June. Globally, USDA has World wheat production at 769.31 MMT, which is 4.12 MT below the June estimate. French wheat harvest is 10% complete according to FranceAgriMer. The ministry recently estimated new crop production down 21% yr/yr.

Sep 20 CBOT Wheat is at $5.35 3/4, up 10 3/4 cents,

Sep 20 KCBT Wheat is at $4.55, down 1 3/4 cents,

Sep 20 MGEX Wheat is at $5.27 1/2, up 1 1/2 cents,

--- provided by Brugler Marketing & Management




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