Pre-Opening Wheat Market Report for 9/22/2010
Related Keywords: Agriculture Email Print | December wheat was 10 cents higher overnight. The dollar was sharply lower after the grains closed yesterday and it moved substantially lower again overnight. The December contract set back to near the mid point of the recent 5-6 week trading range yesterday in conjunction with selling in corn. However, the Fed indicated late yesterday that it is looking at further easing in order to support the economy, and this drove the dollar sharply lower after the close in wheat yesterday and into the overnight session. Traders indicate that this is viewed as supportive in the wheat market. Export activity has remained brisk in wheat in Europe this week with some concerned that a firming US wheat market and a stable or higher dollar might have been curtailing demand for US wheat. Many traders think that a substantially lower dollar would cause a fairly immediate shift back in favor of US wheat on the world market. Traders indicate that further support is coming from an Egyptian tender for 55,000 to 60,000 tonnes of hard wheat. Europe is mainly a source for soft wheat and this means that the US, Australia and Canada are the likely sources for this sale. Results are expected this morning; shipment is scheduled for November 11-20. Tunisia is in the market for at least 25,000 tonnes of durum wheat. Bids also came in on a tender by Bangladesh for 50,000 tonnes of wheat. Wheat lost ground to corn yesterday with Chicago December wheat also posting a loss versus KC December. Traders are watching dry weather conditions in Russia, Australia and Argentina which are balanced against the recently improved moisture levels in the east central US central Plains. However, areas of western Kansas and Oklahoma and the Texas Panhandle are still considered dry. The USDA will issue its weekly Export Sales report tomorrow. Sales need to average 488,600 tonnes each week to reach the USDA’s current export projection for 2010/11