Wheat Falling as USDA Raises Stocks

The wheat complex is trading with losses across the three exchanges, following a bearish USDA report that saw a stocks hike. Chicago SRW contracts are own 20 to 21 cents so far on Friday. KC HRW futures are trading with losses of 20 to 22 cents at midday. MPLS spring wheat is trading with 13 to 14 cent losses across the front months.

USDA’s monthly WASDE update showed US wheat stocks up 23 mbu to 740 mbu this morning, as output was raised by 3 mbu from the September Small Grains Summary. Exports were cut by 25 mbu, as imports were up 5 and feed/residual up 10 mbu. World stocks were trimmed by 0.25 MMT to 276.04 MMT. A 3 MMT increase to Russian stocks (from a cut to exports) was offset by a 1.8 MMT cut to EU stocks, as well as Argentina down 0.5 MMT and China down 1 MMT.

The French wheat crop is 4% planted as of October 5 according to the FranceAgriMer, behind the 5% pace from last year.

Dec 26 CBOT Wheat  is at $6.63, down 20 1/4 cents,

Mar 27 CBOT Wheat  is at $6.76 3/4, down 21 cents,

Dec 26 KCBT Wheat  is at $7.14 3/4, down 21 1/2 cents,

Mar 27 KCBT Wheat  is at $7.27 1/2, down 21 1/2 cents,

Dec 26 MIAX Wheat  is at $6.92 1/2, down 13 1/2 cents,

Mar 27 MIAX Wheat  is at $7.10 1/2, down 13 cents,

On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.