December wheat was down 1 cent late in the overnight session. Outside market factors look negative today as a strong US dollar and weakness in US equity and energy markets help to pressure. September wheat deliveries came in at zero this morning, with 3,515 the total so far this month. The USDA supply/demand report should impact wheat prices today, but wheat may still take direction from the corn market. There is no new production data for wheat. Spring wheat production will show up in the Small Grains report at the end of this month. Traders expect US ending stocks to tighten by about 5 million bushels from 671 million last month. Some traders are looking a bigger drop in ending stocks and a much larger wheat feeding number for this report. Traders will also monitor the world production and world ending stock numbers. December wheat closed moderately lower on the session Friday and down 45 3/4 cents for the holiday-shortened week. A surge higher in the US dollar, led by European debt concerns, helped to drive the market lower into the mid-session, to its lowest level since August 11th. Talk of some rains for the southern plains this week and ideas that Russia and Ukraine will continue to undercut US exporters helped to pressure. The weekly export sales report, which was released before the open on Friday, showed 512,200 metric tonnes if net soybean sales as of September 1st, which was a bit higher than expected. As Cumulative wheat sales stand at 42.5% of the USDA forecast for 2011/12 (current) marketing year versus a 5 year average of 44.8%. Sales of 440,000 tonnes are needed each week to reach the USDA forecast. India has sold 50,000 tonnes of wheat to Bangladesh. France exported 1.25 million tonnes of wheat in July, down 7% from last year. The Commitments of Traders reports as of September 6th showed non-commercial traders were net short 2,336 contracts, a decrease of 1,625 contracts for the week. The short-covering trend is seen as somewhat supportive. Non-commercial and nonreportable traders combined held a net short position of 26,784 contracts, down 679. Commodity index traders held a net long position of 202,898 contracts, down 3,890.
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