July wheat was trading 3 1/4 cents lower late in the overnight session. Outside market forces look mixed. There were 96 deliveries this morning against the May wheat with the total for the month at 321. The USDA reports will set the tone for today with a Crop Production and Supply/Demand report this morning. Traders see winter wheat production near 1.64 billion bushels as compared with 1.494 billion last year. All wheat production is expected near 2.195 billion bushels as compared with 1.999 billion last year. For ending stocks for the 2011/12 season, traders see stocks near 780 million bushels as compared with 793 million posted in the April update. For the 2012/13 season, traders see ending stocks near 785 million bushels but with a range of near 600-925 million bushels. July wheat closed sharply lower on the session yesterday and managed to push into new contract lows late in the day. The surge in the US dollar and selling across a wide spectrum of commodity markets helped to pressure. Traders look for another rain event in the western and southern plains late in the weekend to help support a continued high yield potential for the central plains. Traders see a hefty production total for the crop production report and the selling in corn seemed to have opened the door for more aggressive selling in wheat. Even a strong recovery in the US stock market and energy markets failed to provide much support. Jordan is tendering to buy 100,000 tonnes of wheat. Taiwan bought 48,700 tonnes of US wheat. For the weekly export sales, traders see wheat sales near 600,000 tonnes as compared with 711,600 tonnes last week. India seeks locations to sell wheat with a burdensome supply on hand.
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