Wheat Gains 1-6 Cents

Sep 13, 3:27 pm | Wheat | Share this:

9Wheat futures were mostly higher with the CME Sep contract up 6 cents; the KC Sep KC contract closed up 5 cents while the MGE old-crop contracts were up from 2-3 cents.  In the Sep WASDE, despite strong exports to date and competitive prices, USDA did not raise its projection of US exports primarily because of the record size of the exportable surplus of wheat from the “Black Sea” exporters. 

  The chart  shows the seasonal of the combined exports of Russia-Ukraine-Kazakhstan.  In order to achieve the USDA’s projection for combined record exports of 56.6 MMT, these countries will have to, on average, export a record quantity in each of the 10 months remaining in the Jul-Jun marketing year. Global wheat prices appear to be bottoming and will rally if problems arise with Black Sea logistics or on further losses in the Arg and/or Aussie crops.