Wheat Posts Losses as USDA Shows Abundant World Supply
BRUG - Fri May 10, 5:26PM CDT

Wheat futures posted 6 to 10 3/4 cent losses in most KC contracts on Friday, with July down 3.61% this week. CBT lost 3.03% since last Friday’s close, as today’s losses were 2 to 5 cents. MPLS was fractionally mixed in most contract. USDA showed old crop US stocks at 1.127 bbu, a 40 mbu jump from April, on lower feed & residual and a 20 mbu reduction to exports. New crop stocks are expected to rise 14 mbu to 1.141 bbu. Production for 2019 is seen at 1.897 bbu, with all winter 1.268 bbu of that. HRW production came in at 780.38 mbu, with SRW at 264.57 mbu, both below expectations. USDA just used weather adjusted trend yield for this report. The WASDE did show a 0.63 MMT reduction to world ending stocks at 274.98 MMT for the 18/19 crop. The first 19/20 estimate of the year was 293.01 MMT, a 18.03 MMT yr/yr jump with sharp recoveries in production for Australia, Canada and Russia (still well below private estimates at 77 MMT) among others. Much of this is already priced into the market. Spec traders in the KC wheat futures and options market extended their record large net short to 58,866 contracts as of Tuesday.

Jul 19 CBOT Wheat closed at $4.24 3/4, down 4 3/4 cents,

Jul 19 KCBT Wheat closed at $3.87, down 10 3/4 cents,

Jul 19 MGEX Wheat closed at $5.17, down 1/4 cent

--provided by Brugler Marketing & Management

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