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.

Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

Market Intelligence Free Trial