Wheat Market Weakens as USDA Raises World Stocks

The wheat market showed weakness on Friday as the USDA raised world wheat stocks and adjusted export numbers. Chicago SRW contracts saw losses ranging from 8 ¼ to 16 ¼ cents, with December slipping 6 ½ cents for the week.

Kansas City HRW futures also faced pressure, with contracts down 10 to 20 ¼ cents, and December falling 8 ¾ cents since last Friday. Minneapolis spring wheat was under pressure as well, with contracts 12 ½ to 20 ¼ cents in the red, but December remained steady for the week.

The USDA left US production estimates unchanged, waiting for the Small Grains Summary on September 30. The world stock estimate was raised by 3.04 MMT to 276.29 MMT, as Australia's output increased by 3 MMT and Canada's output rose by 1 MMT.

USDA also cut Russian and Ukrainian exports by a combined 4 MMT. Export sales data showed a disappointing 194,233 MT of wheat sold in the week ending September 3, down 37.64% from last year and 36.39% below the same week last year.