Pre-Opening Wheat Market Report for 10/29/2010
Related Keywords: Agriculture Email Print | December wheat was 4 1/2 cents lower overnight. The dollar was higher. December wheat moved to its highest level since October 13th yesterday, posting its highest close since October 8th in the process. This marked the 5th straight day of higher prices in the December contract which moved back near the mid point of its price range of the past 2 1/2 months. July wheat moved to the highest level since August 5th. Traders credited yesterday’s strength to short covering, concern over the condition of the US winter wheat crop and a lower dollar. However, the wheat market has also rallied in the face of dollar strength this week as dry weather in the Midwest and in parts of the Plains are leading to worries over poor germination of the newly planted winter wheat crop. Iraq’s Grain Board is expected to issue a tender for 100,000 tonnes of optional origin wheat. Otherwise, the tender calendar remains on the light side with Egypt remaining on the sidelines in terms of scheduled tenders so far this week. Weekly export sales were solid on yesterday’s report, up from the previous week and at the highest level in 4 weeks. This week’s net sales for all-wheat were 604,400 tonnes. Soft red winter wheat sales were stronger at 131,600 tonnes with Egypt the biggest buyer by far. As of October 21, cumulative all-wheat sales stand at 57.2% of the USDA forecast for 2010/2011 versus a 5 year average of 61.7%. Sales need to average 457,000 tonnes each week to reach the USDA forecast. The European Union cleared 389,000 tonnes of soft wheat for export this week. This brings the total for the marketing year to 8.1 million tonnes. The International Grains Council left its world production forecast unchanged this month at 644 million tonnes.