US Wheat Market Ignores Tighter Supplies

The US wheat market is showing signs of weakness after the release of the USDA Grain Stocks report. Despite a tighter stocks number, wheat futures are trading lower across all three exchanges. Chicago SRW futures are down by 15 to 17 cents at midday, while KC HRW and MPLS spring wheat are also experiencing losses.

The NASS Small Grains Summary showed an increase in all wheat production to 1.534 billion bushels (bbu), up just 3 million bushels (mbu) from the August Crop Production report and slightly above trade estimates. However, this did not translate into higher prices for wheat futures.

Grain Stocks data also revealed a drop of 288 mbu in September 1 stocks compared to last year, below estimates. This may indicate tighter supply, but it has yet to impact the market significantly.