Wheat futures are mostly 1 to 3 cents lower in all three US markets this morning. They saw 4 to 7 3/4 cent gains in most contracts on Tuesday, disregarding soon to expire Sep. This time there was some short covering, with preliminary open interest dropping 3,085 contracts in Chicago. Gains in corn supported the market. The US dollar index is sharply higher this morning. Ahead of Thursday’s USDA reports, analysts expect to see very little change to the 19/20 US wheat carry out estimate, up 2 mbu to 1.016 bbu. South Korea purchased 76,000 MT of US wheat in a tender on Tuesday. The French Farm Ministry raised their 19/20 wheat production estimate by 1.25 MMT to 39.45 MMT.
Source: Brugler Marketing & Management