Pre-Opening Wheat Market Report for 10/8/2010
Related Keywords: Agriculture Email Print | December wheat was down slightly in overnight trade with outside market forces negative and trade quiet ahead of key USDA reports. The focus of attention on the USDA reports this morning is on soybean and corn production, but wheat traders will be looking to see if there are adjustments in the supply/demand report which might move ending stocks. Most traders seem to be looking for an adjustment lower of 25-30 million bushels from 902 million projected last month. While the current export pace is still lagging behind the pace to reach the current USDA export forecast, traders see European wheat supply running low after December and also see the lower US dollar as "reasons" to suspect revisions higher in US exports. December wheat pushed to the highest level since October 1st early yesterday, but the rally failed to attract new buyers, and futures closed slightly higher on the day but near the lows. Traders said that a reversal in the dollar from lower to higher helped to trigger selling during the session as traders evened up ahead of the USDA reports. Weather remains dry across almost the entire winter wheat belt in the US, which is bringing rapid planting progress despite concern over dryness in soft red areas and in the west central and SW hard red winter wheat belt. The Buenos Aires Grains Exchange left its estimate of Argentina’s 2010/11 wheat crop unchanged at 11.3 million tonnes. This week’s net export sales for US wheat came in at 808,400 tonnes, with Egypt the biggest buyer followed by Nigeria, Thailand and the Philippines. Soft red winter wheat sales remained on the weak side, as France has continued to dominate world sales in the soft wheat category. Cumulative export sales stand at 52.6% of the USDA forecast for 2010/2011 versus a 5 year average of 56.2%. Sales need to average 462,000 tonnes each week to reach the USDA forecast. The EU cleared 480,000 tonnes of soft wheat for export this week which brings the total for the marketing year to 6.8 million tonnes. Bangladesh is tendering for 50,000 tonnes of wheat and Japan bought 141,350 tonnes at their weekly tender.