Morning Wheat Report, 11/11/2015

Wednesday, November 11, 2015

USDA reports aided the recent selloff, down 5-15 cents yesterday, as U.S. stocks were near the top end of estimates and funds added to the CBOT wheat short. Supply & Demand estimates showed an increase in U.S. carryout to 911 MB, up 50 MB on an equal drop in exports for the year. World carryout fell to 227.3 MMT, near the average estimate, as carry-in declined, production was reduced and feed use increased. While there was nothing surprising in the report, the decrease in export sales shows that the USDA does not expect a drastic improvement this year. Egypt's GASC purchased 115 TMT of wheat from Russia and Ukraine at an average price of $210.41/MT C&F, they turned around and are seeking more today. Weather forecasts show an increase in precipitation chances and cooler temperatures for the 6-14 day range. The market is trying to recover some of the losses this morning, as the USD is 230 points lower but still very high.

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