Wheat Report, 09/12/2016

Monday, September 12, 2016

Light volume overnight has the wheat market a little lower ahead of the USDA Sep. Supply & Demand reports. Trade estimates for today’s USDA reports show a very slight increase in U.S. 16/17 carryout to 1.103 BB, while global carryout sees a decline for 15/16 and a 1.5 MMT increase for 16/17. CFTC showed funds increased the net short in CBOT wheat by 14k contracts as of 9/6, whereas daily estimates showed a 6k contract reduction. The Algeria wheat purchase is now stated at 700 TMT of optional-origin milling wheat, significantly above the 300-500 TMT initially estimated. SovEcon reported a 500 TMT decline in the Russian wheat crop, as the crop is declining toward the end of harvest. Domestic values continue to be supported by demand in the rail markets, as mills use 11 pro HRW and 13.0-13.5 HRS to maintain the desired grind. Look for quiet trade ahead of the 11:00am USDA report release, and outside markets are not going to shake that up.

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