Wheat futures are 2 to 5 cents per bushel higher this morning. They saw 2 to 10 3/4 cent gains in most contracts on Monday, with traders bottom picking ahead of Thursday’s USDAs reports. Preliminary open interest in Chicago rose 8,714 contracts on Monday, net new buying rather than the expected short covering. The afternoon Crop Progress report showed the spring wheat crop 71% harvested as of Sunday, with the normal pace at 87%. Condition ratings are not reported after 50% of the crop has been harvested. All wheat shipments in the week of September 5 were 402,486 MT. That was a drop of 27.94% from the previous week and 8.86% lower than the same week last year. Australia’s ABARES cut their 19/20 wheat production estimate by 2.7 MMT from their previous estimate to 21.9 MMT.
Source: Brugler Marketing & Management