Wheat Markets Steady to 3 Lower

Wheat markets start the week UNCH (MPLS) to 3 cents lower (CHI). Wheat futures traded in both directions on Friday. KC HRW futures closed with 3 to 4 3/4 cent losses. HRS wheat was fractionally mixed to 1 1/4 cents lower. SRW wheat was higher on the day, with 8 to 9 1/2 cent gains in the front months. The SRW to corn premium was at a monthly high. September SRW to Sept HRS premium was the highest since April 28, and the Chi to KC spread was the highest premium since December 10. The NASS 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, while the 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. Spring wheat production was estimated at 550 mbu. 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.

--- provided by Brugler Marketing & Management




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