July wheat was trading 6 3/4 cents lower late in the overnight session. Outside market forces look slightly negative today with some strength in the US dollar and a weaker tone to equity markets. There were 5 deliveries against the May wheat this morning bringing the total for the month to 55. The focus on the potential for a very large US winter wheat crop is beginning to weigh on market sentiment and helped to pressure the market yesterday and again overnight. In fact, on the Kansas Wheat tour, the participants pegged the yield at a record high for the areas covered on the first day of the trip. The outlook for more rain in the southern plains on the extended outlook is also seen as a bearish force. July wheat saw late aggressive selling from speculators to drive the market sharply lower on the day to push to new lows for the session into the close yesterday. The excellent weather forecast for US producers, less concerns for the crops in Europe and more rain in the forecast for the southern plains were key factors to help pressure. Warm and wet weather for much of the plains and Midwest is seen as good for crop development at this time of the year. Private exporters reported to the USDA the sale of 110,000 tonnes of US hard red winter wheat to Saudi Arabia. This was their first US purchase in eight months. Spring wheat plantings are 74% complete vs. a 5-year average of 32% and the crop seems to be getting off to a fast start as well. Taiwan bought 56,500 tonnes of US wheat at their tender. Lebanon is tendering to buy 50,000 tonnes of milling wheat. Pakistan and Iran have not agreed on any barter deals in the quest to avoid sanctions and import near 1 million tonnes of wheat.
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