Wheat Report, 09/06/2016

Tuesday, September 06, 2016

The market is off to a lower start coming off the holiday weekend, as large estimates were released Friday for row crops and wheat continues to find weaker news. Russia’s Prime Minister gave the official announcement on Friday that the export duty on wheat would move to zero for the next two years, as the grain harvest is up about 34% from last year. This should move Russia prices lower, as shippers are willing to sell at lower values, just as the U.S. flat price decline has taken wheat back to competitive levels. Domestic cash values remain firm in the rail market, while truck bids remain flat. Rainfall is expected from N. TX to the western Corn Belt this week, with above normal temperatures from MO eastward. The USD is 200 points lower, trading in a sideways pattern the last couple sessions. Look for wheat to start lower on light volume and row crop weakness, but a slight correction could follow this morning.

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