Pre-Opening Wheat Market Report for 9/23/2010
Related Keywords: Agriculture Email Print | December wheat was 11 1/4 cents lower overnight. The dollar posted a modest gain overnight after a sharp 2-day sell off. A lower dollar on Tuesday and Wednesday failed to support the wheat market and selling accelerated overnight as the dollar posted a modest advance. Traders indicate that improved soil moisture in the Plains and prospects for a big jump in planted area for soft red winter wheat are starting to weigh on the market, particularly given the fact that 2010/11 ending stocks are projected to be high in the US for both soft red wheat and for wheat overall. This comes despite an active export market with US wheat in a position to further increase its share of the crucial import market in the Mediterranean Basin. Egypt was a buyer of 220,000 tonnes of wheat yesterday, all of it from the US. Egypt had been tendering for hard wheat from the US, Australia or Canada, and the fact that the entire sale went to the US was initially viewed as very favorable by the market yesterday. Jordan was also a buyer of 150,000 tonnes of optional origin wheat along with 50,000 tonnes of wheat from Germany. Officials said that this was to build up stocks amid fears of a further surge in food prices. In addition, Tunisia bought 50,000 tonnes of optional origin durum wheat. Traders said that lower dollar may have contributed to the US’ strong showing on the Egyptian tender. An Indian firm won the latest export tender by Bangladesh for 50,000 tonnes of soft wheat. This tender was reissued after Bangladesh had cancelled it earlier in the month. The USDA will issue its weekly Export Sales report this morning. Traders are looking for a total above the 488,600 tonnes that are needed each week to reach the USDA’s current export projection.