Wheat Report, 08/22/2016

Monday, August 22, 2016

New week, but the same story for the wheat market, as little fresh news is pushing prices significantly either direction. Row crops are slightly weaker to start the week, as traders in the Corn Belt will be watching the Pro Farmer crop tour for another view on the crops. KC spot bids remained firm for mid-12 to 13 protein levels, while the spread between 11.5 and 12.0 has narrowed again. Truck markets feel plugged, but the recent export demand has some low protein stocks moving into shippable positions to move to the gulf. EU Crop Monitor cut the soft wheat yield estimate from 90.7 bpa to 87.1 bpa, due to the sharp production declines in France. Crude Oil is down over $1/bbl this morning and could weigh on grains and oilseeds today, with the USD recovering some losses. Look for sideways trade to continue for wheat, as the market knows that stocks outpace demand, but look for bids to surface for buyers with specific needs.

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