8/14/17 Wheat futures spent most of the morning trading lower before recovering at the close. White wheat prices were off a dime from Friday as producer selling picked up a bit today. The next CCC tender for 2.96 million bushels of white wheat for Yemen is on Wednesday. Additionally Chile and Taiwan are in this week for white wheat. Australian wheat prices are significantly above U.S. white wheat prices which may be helping us in securing some additional business during harvest right when we need it.
The Weekly Top Five
These are the 5 biggest issues that NWGG feel are affecting today's markets and items to watch for as we progress through the year.
1. 8/11/17 The USDA put out a very bearish supply and demand report on August 10th. Projected corn yield was only lowered by one bushel when the market was expecting/hoping for something closer to 4 bushels. DNS projected ending stocks were increased by 9 million bushels as exports were cut more than production. Soybean yields were increased by 1.4 bpa. 2. 8/11/17 Word ending stocks for wheat were increased by 4 million metric tons versus last month on increased production in Russia. 3. 8/11/17 White wheat ending stocks were cut by 17 million bushels on increased export demand but are still burdensome at 90 million bushels. 4. 8/11/17 Export business has been very good for white wheat so far this year and the government has been in the market buying about 7 million bushels for donation packages. This is coming at a time where farmer selling is not at a high enough volume to cover those nearby sales so exporters have had to raise basis levels and boost prices in order to get wheat bought nearby. This is most likely a good selling opportunity created by the timing of the sales and harvest progress not quite lining up. 5. 8/11/17 The next thing on the radar for the corn market is the Pro Farmer Tour which will take place the week of August 21st with scouts surveying fields across the corn belt. Crop conditions this year seemed to indicate that the USDA's current 169.5 bpa projection on corn yield is too high and the market will be looking to the tour's results to confirm whether the USDA is correct or not.