Wheat Report, 05/17/2016

Tuesday, May 17, 2016


Overnight trade is showing steady to better trading across the three contracts, as buying moves back into the soybean market. Export inspections saw a decline from the previous week to 368 TMT, with Japan noted as the top destination. Favorable crop ratings continue for winter wheat in the U.S., showing unchanged at 62% g/e; as KS, MT, NE and SD showed slight improvement and slight declines in CO and TX. Near-term forecasts show cool and wet conditions continuing across the southern Plains this week, with some much needed warmer temperatures late next weekend. Germany’s farm coop assoc. estimated 2016 wheat crop at 25.6 MMT, down from 26.1 MMT last month and down 4% from last year, as producers favor canola planting. Cash markets remain strong for spot rail wheat, but new crop coverage still feels light by mills. Look for wheat to start slightly stronger on wet condition concerns in southern areas, with the soybean market acting as the driver today on buying interest.


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