The Quarterly Stocks and Production reports on Friday really just solidified what the market already knows, there is a lot of wheat and demand is only slowing chewing through stocks. The Sep. 1 stocks were shown at 2.527 BB, up 130 MB above avg. estimates, with feeding thought to be lower than the trade expected. The wheat crop saw a slight deduction, but HRW and White wheat rose, while SRW and spring wheat fell. Cash markets were stronger going into the end of the month, with interior and gulf bids seeing some improvement. There should be more covering of needs in early October, as mills especially don’t feel like they have coverage on. Outside markets are mixed; USD up 80 points, Crude Oil up 35 points, but equities are lower. Look for pressure to remain on KC and CBOT contracts, while row crops try to continue Friday’s strength.
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