December wheat was down 12 cents late in the overnight session. Outside market factors look negative today with a strong US dollar and weakness in a wide array of other commodity markets. September wheat deliveries came in at 1,195 contracts as compared with 1,552 yesterday. Ideas that global supply is still ample, a slowdown in the fund short-covering seen in recent weeks, and the weaker export tone for US wheat are seen as negative forces, and a stronger US dollar just adds to these concerns this morning. Big deliveries for Chicago wheat and the outlook for the second highest ending stocks on record for US soft red wheat are also seen as negative forces. Taiwan bought 53,170 tonnes of US wheat overnight. The German farm ministry sees winter wheat production this year at 22.6 million tonnes, down 3.7% from last year. The early selling yesterday helped drive the market lower, but the market recovered to close just slightly lower on the session. The market saw pressure early on more talk of cooler weather for the plains next week and the possibility of some rain helping to spark more selling. Ideas that export sales from the US could continue to be sluggish due to more aggressive pricing from the Black Sea region plus a hefty 1st day delivery total helped to pressure as well. September wheat pushed down to its lowest level since August 19th, as deliveries were large at 1,552 contracts, came from one commercial house and there was a lack of a strong stopper. This morning’s deliveries were spread to two or three commercial-type houses. Strength in soybeans and a firm tone for other commodity markets helped to spark a recovery off of the early 4-day lows. Traders see weekly export sales, to be released before the open this morning, remaining sluggish near 450,000 tonnes. Bangladesh is tendering for 50,000 tonnes of wheat. Syria is also in the market for 100,000 tonnes of soft wheat. Iraq is still in the market for a minimum of 50,000 tonnes, and Morocco is in the market for 300,000 tonnes of US wheat.
Bron:CME