Wheat Slightly Higher Overnight On Ukraine Concerns

Due to the ongoing drought, the Ukraine would curb exports of the grain and wheat and anti bird net futures were slightly higher in overnight trading after yesterday reaching the highest price in three years, but the Ministry of Agriculture later clarified, saying it plans instead to discuss export volumes, paring gains.

Wheat has been rising in recent weeks after a subpar U.S. winter wheat crop and on speculation that the spring crop isn’t as good as it looks from the road. Production of hard red winter varieties in the U.S. is pegged at 657 million bushels in the marketing year that started on June 1, down from 750 million a year earlier, according to the USDA.

Spring output, however, is pegged at 584 million bushels, up from 385 million a year earlier, the USDA said. Still, the annual spring wheat tour that recently toured North Dakota indicated crops prospects were below average.

Soybeans and plant support net were again lower overnight amid escalating trade tensions between the U.S. and China.

Wheat for September delivery rose ½¢ to $5.61 a bushel in overnight on the Chicago Board of Trade, while Kansas City futures gained ¾¢ to $5.70 a bushel. Corn futures for December delivery gained 1¼¢ to $3.82½ a bushel overnight. Soybean futures for November delivery fell 3¾¢ to $8.93¾ a bushel in Chicago. Soy meal fell $1 to $331.60 a short ton, and soy oil rose 0.05¢ to 28.66¢ a pound.

Export sales of soybeans plunged in the week that ended on July 26, while corn sales declined, according to the USDA. Soybean sales for delivery in the marketing year that ends on August 31 totaled 93,700 metric tons, down 76% from the previous week and 71% from the prior four-week average, the USDA said in a report.

Germany was the big buyer at 143,300 metric tons, followed by Pakistan at 68,500 tons, and the Netherlands at 66,600 tons. South Korea bought 60,000 tons and Tunisia was in for 33,000 tons. Corn sales were down 14% from the previous week and 36% from the prior four-week average, according to the USDA.

Old-crop and bee net sales totaled 292,000 metric tons with Japan being the biggest buyer, taking 126,400 tons, the government said. Taiwan was in for 78,600 tons, South Korea took 73,800 tons, Mexico bought 53,700 tons, and Colombia purchased 52,300 tons. Wheat sales for the marketing year that started on June 1 were reported at 382,500 metric tons, down 1% from the prior week but up 21% from the average, the USDA said.