Pre-Opening Wheat Market Report 28 september
December wheat was down 5 1/2 cents late in the overnight session. Outside market forces are looking somewhat negative this morning, with a weaker tone for energy and metal markets and a firm US dollar. Wheat traders face a production report and the quarterly grain stocks report on Friday. Adjustments in acreage and yield are expected for the spring wheat crop and possible better-tha-expected feed usage data are seen as key factors for these reports. Traders see September 1st stocks near 2.035 billion bushels, compared with 2.450 billion last year. Traders see all wheat production adjusted lower by about 35 million bushels from the current USDA estimate of 2.077 billion. In August, the USDA pegged other spring wheat at 522 million bushels, but traders are expecting lower acres and lower yield to push production below 495 million bushels for this report. December wheat eased off of its early highs yesterday, along with the other grains, but it still managed to close higher for the third session in a row. A sharp break in the US Dollar and a surge higher in energy and equity markets helped fuel active buying in wheat. Some traders also indicated that there were signs of short-covering early in the session that fostered the run to a 4-session high. A dry forecast for the winter wheat growing areas in the US and dryness concerns for the Ukraine added to the positive tone. The weekly Crop Progres report showed that just 26% of the US winter wheat crop was planted as of Sunday, compared to 14% last week and 32% last year. The 10 year average for this time of year is 37%. Texas is just 14% planted versus 34% on average for this time of the year, and Oklahoma is 11% planted versus an average of 31%. Bangladesh is tendering to buy 50,000 tonnes of wheat. Tunisia is tendering to buy 67,000 tonnes of soft wheat and 50,000 tonnes of durum. Syria has passed on a tender this week to import 100,000 tonnes of soft wheat. Russia exported a record high 2.7 million tonnes of wheat in August, and their exports in September could reach 3.3 million tonnes