September wheat opened 44 1/4 cents lower on the session at 630 and established an early range of 614 1/4 to 632 3/4. The collapse in corn values and slightly negative news from the USDA this morning helped to drive the market sharply lower early in the session. Lower corn values and “less” feedwheat demand for the US and the rest of the world helped to pressure the market. Better weather for harvest in the US and for crop conditions in the northern plains and Canada added to the negative tone early. Traders were looking for spring wheat plantings to come in near 13.35 million acres but the report showed 13.627 million as compared with 14.427 as the March estimate. The USDA June 1st stocks report is also the ending stocks estimate for the 2010/11 season for the wheat market. Traders were looking for stocks to come in near 825 million bushels but the report came in at 860.78 million compared with 973 million last year and 809 million posted in last months supply/demand update. The extra 50 million bushels in beginning stocks for the new crop season was seen as a negative. With reports of major losses in North Dakota for planted area this week, the USDA has already indicated that four states will be re-surveyed in July (North and South Dakota, Montana and Minnesota) and reported on August 11th. Weekly export sales for wheat, came in at 545,100 metric tonnes which pushed cumulative wheat sales to 29.0% of the USDA forecast versus a 5 year average of 21.4%. Sales of 413,000 metric tonnes are needed each week to reach the USDA forecast.

Bron: CME