Spring Wheat Acreage
In somewhat of a surprise, spring wheat acreage will be higher by about 5 percent, although estimates of wheat plantings for the year are that they'll be down by 9 percent, according to the Planting Intentions Report.
Total acreage to be planted includes hard red and white wheat, and will come in at 13.9 million acres.
Although the final numbers aren't in yet, not much is expected to change in any major way.
This is surprising in light of the continuing downward pressure on wheat prices. It seems farmers would wisen up and plant another crop they can actually make money on.
Showing posts with label Red Wheat. Show all posts
Showing posts with label Red Wheat. Show all posts
Saturday, April 10, 2010
Monday, August 10, 2009
Wheat Exports in Slow Start
Exports of U.S. wheat promise to be down significantly for 2009-2010, according to the USDA, as projections are for about 925 million bushels of wheat to export during that time period, where the marketing year began on June 1.
Assuming this is accurate, which it seems it's close, that would be 90 million less bushels of wheat exported this year over last, and a huge 339 million less than the 2007-2008 year.
At this pace it'll be the third worst year of wheat exports in 25 years.
Wheat export inspections for the first 9.6 weeks show that they're at 130.7 million bushels; almost 100 million bushels under last year at this time. The weekly average wheat inspection has been at an anemic 13.7 million bushels.
This is even far below the USDA export projection of 925 million bushels, as the average needed to reach that is 18.7 million bushels for the rest of the year, which will be difficult to attain.
While some say this isn't a good comparison over the very quick rate of wheat exports last year, it still is far behind what would be needed to reach projections. As fo the end of July, the USDA said outstanding export sales of wheat stood at 148 million bushels, while last year it was at 276 million bushels.
The USDA’s weekly U.S. Export Sales report breaks down exports and export sales by where the wheat is headed and by class of wheat. Through July 30, export commitments compared to those of last year plunged by 60 percent for hard red winter wheat, 63 percent for soft red winter wheat, and 26 percent for hard red spring wheat. Export commitments were 17 percent larger for white wheat and 15 percent larger for durum wheat. Commitments for all classes of wheat were down by a huge 46 percent.
Among its largest wheat trading partners, commitments have dropped significantly; 27 percent to the Philippines, 45 percent to Japan, 48 percent to Mexico, and 87 percent to Egypt. Egypt buys only soft red winter wheat from the U.S.
Exports of wheat globally are down this year because a number of countries have significantly increased wheat production domestically, so diminishing the amount of wheat needed for its citizenry outside the countries.
Much of the recent low wheat prices has been attributed primarily to the decline in export demand for soft red winter wheat, which doesn't look to change this year.
As far as wheat inventories globally, they are expected to grow by 8 percent this year, which equals 512 million bushels. Of that, China will account for 80 percent of the wheat inventory increase.
Assuming this is accurate, which it seems it's close, that would be 90 million less bushels of wheat exported this year over last, and a huge 339 million less than the 2007-2008 year.
At this pace it'll be the third worst year of wheat exports in 25 years.
Wheat export inspections for the first 9.6 weeks show that they're at 130.7 million bushels; almost 100 million bushels under last year at this time. The weekly average wheat inspection has been at an anemic 13.7 million bushels.
This is even far below the USDA export projection of 925 million bushels, as the average needed to reach that is 18.7 million bushels for the rest of the year, which will be difficult to attain.
While some say this isn't a good comparison over the very quick rate of wheat exports last year, it still is far behind what would be needed to reach projections. As fo the end of July, the USDA said outstanding export sales of wheat stood at 148 million bushels, while last year it was at 276 million bushels.
The USDA’s weekly U.S. Export Sales report breaks down exports and export sales by where the wheat is headed and by class of wheat. Through July 30, export commitments compared to those of last year plunged by 60 percent for hard red winter wheat, 63 percent for soft red winter wheat, and 26 percent for hard red spring wheat. Export commitments were 17 percent larger for white wheat and 15 percent larger for durum wheat. Commitments for all classes of wheat were down by a huge 46 percent.
Among its largest wheat trading partners, commitments have dropped significantly; 27 percent to the Philippines, 45 percent to Japan, 48 percent to Mexico, and 87 percent to Egypt. Egypt buys only soft red winter wheat from the U.S.
Exports of wheat globally are down this year because a number of countries have significantly increased wheat production domestically, so diminishing the amount of wheat needed for its citizenry outside the countries.
Much of the recent low wheat prices has been attributed primarily to the decline in export demand for soft red winter wheat, which doesn't look to change this year.
As far as wheat inventories globally, they are expected to grow by 8 percent this year, which equals 512 million bushels. Of that, China will account for 80 percent of the wheat inventory increase.
Saturday, August 2, 2008
Kansas City Board Of Trade Wheat Volume Third Largest In July
The Kansas City Board of Trade trading volume for the month of July ended at 300,025 contracts in the hard red winter wheat futures contract, which makes it the third-largest trading volume for the month of July, although far behind 407,032 contracts in 2007 and 377,494 contracts in 2006.
Price volatility continues, as during the month of July, the nearby contract traded in a range of 98 cents, as low as $8.07 and as high as $9.05. During that same period of time in 2007, the price range was 83 1/2 cents, with lows reaching $5.73 and highs $6.56 1/2. On Monday, the USDA projected the hard red winter wheat harvest was 79 percent complete. KCBT floor traders think it's a little further along, estimating HRW wheat harvest at 80 to 85 percent complete.
Price volatility continues, as during the month of July, the nearby contract traded in a range of 98 cents, as low as $8.07 and as high as $9.05. During that same period of time in 2007, the price range was 83 1/2 cents, with lows reaching $5.73 and highs $6.56 1/2. On Monday, the USDA projected the hard red winter wheat harvest was 79 percent complete. KCBT floor traders think it's a little further along, estimating HRW wheat harvest at 80 to 85 percent complete.
Wednesday, March 26, 2008
Effective Date for Price Limit Rules on the Kansas City Board of Trace Wheat is March 28, 2008
On Friday, March 28, it needs to be remembered that the Kansas City Board of Trade has been given approval by the Commodity Futures Trading Commission (CFTC) to change the daily price limits for hard red winter wheat options and futures.
Since it's the effective business date, it entails the evening session on Thursday, March 27, 2008.
The press release said:
"The initial daily price limit for wheat remains at 60 cents per bushel and will increase by 50 percent the following trading session when the price of two or more futures contract months within the first five listed non-spot contract months, or the final contract month of a crop year, closes at limit bid or limit offer. Price limits can expand two consecutive times: to a 90 cent per bushel limit and then to a maximum $1.35 per bushel limit.
"Daily price limits will step back to their prior levels when no futures contract month closes at limit bid or limit offer that day. If price limits are $1.35 per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months revert back to 90 cents per bushel the next business day. If price limits are 90 cents per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months revert back to 60 cents per bushel the next business day. The CME Group is adopting the same price limits policy for its wheat contracts.
"Following the expanded price limits effective trade date February 11, market users asked for additional changes. Market users wanted to see: price limit provisions that expand based on the activity of the front months where the majority of open interest resides, a maximum amount that price limits can expand to, and provisions that allow price limits to contract at the same rate that they expand. These changes address all three of these concerns.
"Options pricing is subject to the same daily price limits as the underlying futures contract."
Monday, March 24, 2008
How the Wheat Market Performed on 3-24-2008
For May Wheat, it climbed by 32 1/2 to finish at 1020, finishing off its high of 42 1/4, but up by 32 1/2 from its low. July Wheat finished a little lower, ending at 1018 1/2, which was 36 down from its high, and up 45 from its low.
Traders on the floor said weather was one of the major factors today, as weather in the west and southwest continues to be dry in the hard red wheat areas, while wet weather persists in the south central and eastern soft red wheat areas.
With wheat having supply problems over the last year, Egypt announced via their agriculture minister that they were planing 3.2 million acres of wheat this year, the most they've planted in a decade.
Traders on the floor said weather was one of the major factors today, as weather in the west and southwest continues to be dry in the hard red wheat areas, while wet weather persists in the south central and eastern soft red wheat areas.
With wheat having supply problems over the last year, Egypt announced via their agriculture minister that they were planing 3.2 million acres of wheat this year, the most they've planted in a decade.
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