One of the few reports making its way out of the USDA at present is the USA weekly export inspections report. This is grain that has been
loaded for export. Wheat surprised the punters with around 545,804 tonnes listed as being loaded for the week ending Jan 10th. The majority
left the US from the PNW destined for the Asian markets.
On the back of news like this one might expect to see a healthy bounce in US wheat futures. Well as we know the futures market is never one
to follow the path of logic and wheat futures for all three grades closed lower overnight.
Talk of Russian exports being higher than expected for January were partly to blame while technical selling was the major downward influence.
News out of Russia, if anything tends to suggest a sharp downturn in January wheat exports is to be expected. So who do we believe, those
nasty Russians or the always truthful USA, I have so many analogies for this comment, but none are printable.
Looking at a CME March wheat chart tells you that the market is a little overbought, probably not wise leading into a USDA report that has
been delayed and still hasn’t got a delivery date. I can’t help but think this market will try and stay relatively neutral until we see a WASDE
report.