Pre-Opening Wheat Market Report for 9/28/2010
Related Keywords: Agriculture Email Print | December wheat was 10 1/4 cents lower overnight. The dollar was mixed to higher for most of the overnight session. Selling during the day session yesterday and again overnight has pushed the December wheat contract back down near last week’s lows. Traders indicate that a more favorable overall crop outlook in the Southern Hemisphere is combining with improved moisture in many winter wheat areas of the US and expectations of a big increase in soft red winter wheat planting in the Midwest to generate increased pressure in wheat futures. However, export demand remains solid and the Australian Bureau of Statistics reported today that the country’s bulk wheat stocks fell by 15.4% from July to August. This was credited to Russia’s ban on wheat exports this summer. The USDA’s weekly Crop Progress report showed the US spring wheat harvest at 89% complete compared to 87% last week and 93% last year. The 10 year average is 91%. The report showed winter wheat planting at 33% complete compared to 18% last week and 36% last year. The 10 year average for this time of year is 38%. Weekly export inspections were 24.3 million bushels, down from 33.1 million last week. Inspections need to average 24.9 million each week to meet the USDA’s current export projection. Wheat traders may have been disappointed that the cumulative inspections total for wheat continues to run short of the average pace at this time of year. Exports could pick up after the end of the year if the EU (France) runs out of an exportable surplus as some analysts are currently projecting. Egypt is tendering for 55,000-60,000 tonnes of soft wheat and/or milling wheat. Traders are hoping that the US can get a share of this tender for soft wheat despite aggressive competition from Europe.