December wheat was 4 cents lower overnight. The dollar index moved higher into the morning hours.

The wheat market generally followed the China currency reaction that was seen in a number of commodity markets yesterday, starting out on the plus side, but eroding to lower on the day during the middle of the day session. However, wheat ran out of sellers late in the session yesterday and that resulted in a partial recovery of the day’s losses prior to the close.

Traders indicate that the wheat market has found some balance in terms of the overall fundamentals in recent days and weeks. On the negative side price-wise, world supplies are still ample, the US harvest is again underway, and US quality appears to be high. On the positive side price-wise are the pick up in world demand over the past week and the loss of acreage in Canada due to heavy rains.

This week’s Crop Progress report showed the winter wheat harvest at 17% complete compared to 9% last week and 15% last year. The soft red wheat harvest is advancing more rapidly than the hard red winter wheat harvest at this point due to recent heavy rains in south central Plains. The 10 year average for the overall winter wheat harvest progress at this time of year is 27%. The unharvested winter wheat crop is rated at 65% good/excellent compared to 66% last week and 45% last year. The 10 year average for this time of year is 43%. The spring wheat crop is rated at 84% good/excellent compared to 86% last week and 77% last year. The 10 year average for this time of year is 70%.

On top of news this week that Saudi Arabia completed its tender for 990,000 tonnes of wheat with the business going to Canada and Germany, Egypt bought 120,000 tonnes of wheat at their tender from Russia and Kazakhstan. This week’s export inspections were 11.5 million bushels, down from 14 million last week. Inspections need to average 17.40 million each week to reach the USDA’s projection.
Bron:CME