Wheat Relatively Unreactive to Reports so far

The wheat market is showing a little life, with the actively traded (non-December) futures up 3 to 6 cents. The WASDE Report showed a decrease of 40 mbu to U.S. wheat carryover. The adjustment came from a decrease to imports vs. November, as well as a 25 mbu increase to wheat exports from the previous estimate. Ending stocks were lower than trader expectations at 974 mbu. World ending stocks were 1 MMT higher than the November forecast; at 289.5 MMT. The USDA revised Aussie wheat forecast to 16.1 MMT a 1.1 MMT reduction from Nov estimate and 1.2 MMT lower than last year. Private estimates yesterday had called for a cut to 14.97 MMT, but the USDA folks weren’t willing to go that low with harvest still underway. USDA increased their wheat production estimate for 2019 to 133.59 MMT, which was up 1.6% yr/yr.

GASC (Egypt) issued an international wheat tender for early February delivery. Results are expected this afternoon; so far France holds the lowest offer – no US offer. Japan is looking for 171,045 MT of wheat – with 85,8095 MT from U.S and the remainder sourced from Canada and Australia.

Dec 19 CBOT Wheat is at $5.35 1/2, up 3 1/2 cents,

Dec 19 KCBT Wheat is at $4.11 1/2, unch,

Dec 19 MGEX Wheat is at $4.97, unch,

--- provided by Brugler Marketing & Management

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