July wheat was trading 12 1/2 cents higher near 7:30 am cst. Outside market forces look slightly supportive today with weaker US dollar and some support from higher trade in other commodity markets. While there are some rains in the forecast for Russia to ease stress, the region is still too dry and further adverse weather ahead could take a toll. US harvest is getting more active with one of the earliest Kansas starts on record but early yields are not as high as producers thought just a few weeks ago. The market fell yesterday with the turn down in corn, a bounce in the US dollar and weakness in the stock market helping to spark increased fund trader selling late in the day. The market was trading near 11 cents higher at the pit opening and spent most of the session higher on the day. Kansas City wheat was trading stronger than Chicago with increased heat and dryness expected for the western plains states. The supportive outside market forces of higher equity markets and a weaker US dollar faded into the mid-session and this, along with weaker corn values helped pull the market well off of the highs. Net weekly export sales came in at 72,400 metric tonnes for the current marketing year and 754,600 for the next marketing year for a total of 827,000. As of May 17th, cumulative old crop wheat sales stand at 100.0% of the USDA forecast versus a 5 year average of 97.7%. Old crop sales for wheat, and especially corn helped to pressure. The International Grains Council believes global wheat stocks will fall to a four-year low for the 2012/13 season after cutting world production by 5 mmt to 671 million tonnes and this pulled world ending stocks down to 191 million tonnes, down 15 million. Jordon bought 50,000 tonnes of optional origin wheat.
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