Wheat Report, 08/23/2016

Tuesday, August 23, 2016

The market remains pressured this morning, following row crop conditions that remain impressively high, and lack of supportive wheat news. Export inspections totaled 531 TMT last week, led by HRW that included a cargo to Brazil. Russian Ag officials are pushing for the wheat export tariff to be reduced to zero in order to boost exports following the large crop, which could increase farmer selling while it lasts, as producers face working capital and credit issues. StatsCanada showed all wheat production at 30.49 MMT this morning, which was right on estimates and up 10% from LY. Domestic rail bids saw some support on 12.0 pro singles, as mills and resellers are looking for a little more coverage. We have seen gulf values soften slightly, as freight costs are a bit lower, so front-end spillover demand for singles will likely remain limited. Weakness in EU wheat has become a wet blanket for the U.S. wheat market this week, since fresh news of supportive activity is slim.

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