After the long weekend, wheat gapped higher on the opening bell with early support coming from reports Russia is not looking to resume peace talks. Russia’s perspective is that the war is advancing in their favor and that they have no reason to resume peace talks. Light support was also due to reports of quality issues in Canada as heavy rains continue to delay harvest activity. Canada retaliated to the recent implementation of US tariffs by placing tariffs on $20 billion of US imports. An escalation in the Iran war added support due to concerning wheat logistics.
In Wednesday’s session wheat opened mixed with both winter wheat exchanges opening higher while Mpls started on the defense. It did not take long for all three wheat exchanges to firm and post solid gains by the end of the night session. An escalation in both wars added support as Russia continues to aggressively hit Ukraine with missiles and drones. A surge in attacks in the Middle East added support as reports have Iran attacking vessels and the US responding in kind. Stats Canada estimated all wheat stocks as of July 31 at 6.649 MMT vs 4.24 MMT last year. Position squaring and the evening up of positions ahead of Friday’s report was also evident.
On Thursday wheat opened mixed with the winter wheat exchanges pushing higher while Mpls faded the opening. The overnight session saw wheat continuing to trade on the defense and mostly lower as the market looks for news to give traders direction. Light selling was tied to reports of increasing shipping costs due to the escalation of the war in the Strait of Hormuz as well as in the Black Sea. Position squaring and the evening up of positions ahead of Friday’s report was also evident. Production concerns in Canada added support. Wheat broke to the upside late in the session due to spill over support from the other grains as well as from production concerns in Canada.
This report should not bring much to the table for wheat as USDA will not steal the thunder from their Sept 30 Small Grains Summary report. Estimates for Friday’s Sept Crop Progress report have wheat ending stocks at 719 MB vs 717 MB last month. World ending stocks are estimated at 273.5 MMT vs 273.3 MMT last month.
Dec Mpls support is at $7.21, Dec Chicago wheat support is $6.78; Dec KC support is $7.55.
For the week, Dec MIAX was at $7.45 unchanged for the week, Dec Chicago was at $7.2525 down 8.75 cents, Dec KC was at $7.985 down 3.75 cents.
Wheat Weekly Comments September 11
Wheat Weekly Comments September 11
After the long weekend, wheat gapped higher on the opening bell with early support coming from reports Russia is not looking to resume peace talks. Russia’s perspective is that the war is advancing in their favor and that they have no reason to resume peace talks. Light support was also due to reports of quality issues in Canada as heavy rains continue to delay harvest activity. Canada retaliated to the recent implementation of US tariffs by placing tariffs on $20 billion of US imports. An escalation in the Iran war added support due to concerning wheat logistics.
In Wednesday’s session wheat opened mixed with both winter wheat exchanges opening higher while Mpls started on the defense. It did not take long for all three wheat exchanges to firm and post solid gains by the end of the night session. An escalation in both wars added support as Russia continues to aggressively hit Ukraine with missiles and drones. A surge in attacks in the Middle East added support as reports have Iran attacking vessels and the US responding in kind. Stats Canada estimated all wheat stocks as of July 31 at 6.649 MMT vs 4.24 MMT last year. Position squaring and the evening up of positions ahead of Friday’s report was also evident.
On Thursday wheat opened mixed with the winter wheat exchanges pushing higher while Mpls faded the opening. The overnight session saw wheat continuing to trade on the defense and mostly lower as the market looks for news to give traders direction. Light selling was tied to reports of increasing shipping costs due to the escalation of the war in the Strait of Hormuz as well as in the Black Sea. Position squaring and the evening up of positions ahead of Friday’s report was also evident. Production concerns in Canada added support. Wheat broke to the upside late in the session due to spill over support from the other grains as well as from production concerns in Canada.
This report should not bring much to the table for wheat as USDA will not steal the thunder from their Sept 30 Small Grains Summary report. Estimates for Friday’s Sept Crop Progress report have wheat ending stocks at 719 MB vs 717 MB last month. World ending stocks are estimated at 273.5 MMT vs 273.3 MMT last month.
Dec Mpls support is at $7.21, Dec Chicago wheat support is $6.78; Dec KC support is $7.55.
For the week, Dec MIAX was at $7.45 unchanged for the week, Dec Chicago was at $7.2525 down 8.75 cents, Dec KC was at $7.985 down 3.75 cents.