Spring wheat was hit hard in overnight trade, both cash and futures shedding significant value. The average cash bid for 1CWRS13.5 wheat out of SE Saskatchewan for a December lift was CAD$265.25 / tonne according to PDQ, down CAD$8.30 / tonne from the previous day. Minneapolis spring wheat futures shed 18.25c/bu in the December contract, roughly AUD$10.20 / tonne at this mornings exchange rate. US values out of the Pacific Northwest were also lower compared to yesterdays conversion, back roughly AUD$9.13/tonne. There was also weakness in both soft red winter wheat and hard red winter wheat futures and cash for both grades out of the PNW, but spring wheat was the one left bleeding in the corner.
Paris milling wheat did not follow the US markets as low, down €1.00 / tonne in the December slot. Cash values FOB Rouen for 11.5% milling wheat were lower, but compared to yesterdays conversion the fall there is less than an Aussie dollar this morning. Black Sea cash bids for milling wheat were flat to higher in AUD compared to yesterday.

The punters in the US had called the US spring wheat crop a little smaller than what the USDA called it in last night’s WASDE. I’m not sure that the net result should have resulted in the sell off that occurred, but “the markets never wrong”….. apparently. The big picture in US wheat is still a lower year on year carryout, a year on year reduction in all grades of wheat except durum and white wheat. US white wheat production was estimated at 7.86mt, up 353kt on last year, not what we in NNSW need to see. The protein wheat side is still much less than last year, 408kt less HRWW and 925kt less spring wheat.
World wheat production was reduced a smidge, world ending stocks were reduced 1.24mt, 1.07mt of that is in the major exporters ending stocks data, that’s not bearish mid term. Canadian production was reduced 1mt, Russian production was increased 500kt, Ukraine was reduced 1mt, China was unchanged. Middle east and Asian imports were both increased a smidge. Kazakhstan production was increased 1mt, they’ve had a cracking season there.