Daily World Wheat News: Profit Taking Weighs On Prices

By Commodity News Service Canada

Winnipeg, Oct. 24 – Minneapolis, Kansas City, and Chicago wheat futures closed lower on Thursday, undermined by profit taking following gains seen in recent sessions, market watchers said.

Further weakness came from the USDA’s weekly export report (which was not made available during the 16-day government shutdown), as sales during the week ended October 3 totaled 653,600 metric tonnes, which was down 22% from the previous week. Concerns about wheat production in Argentina, Brazil and the former Soviet Union did provide prices with some support.

Prices in US$ per bushel:

CBOT Wheat           Dec     6.9650    dn 0.0525

                     Mar     7.0700    dn 0.0450

MGEX Spring Wheat    Dec     7.5200    dn 0.0675

                     Mar     7.6225    dn 0.0625

KCBT Red Wheat       Dec     7.6425    dn 0.0650

                     Mar     7.6350    dn 0.0600

   There are reports that India cancelled its latest tender to sell wheat out of state reserves due to poor bids. India was asking for US$300 per tonne, while the highest bid was US$269 per tonne.  

   According to a Reuters’ poll, 2013/14 wheat production in Australia is expected to be 25.3 million tonnes. However, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has wheat production pegged at 24.5 million tonnes.

   The USDA reported that export sales for the week ended October 3 totaled 653,600 tonnes. The leading US wheat buyers during that period were Brazil at 192,500 tonnes, South Korea at 173,600 tonnes and Nigeria at 101,500 tonnes.

 

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