Gleadell Feed Wheat report

FEED WHEAT by David Sheppard

David Sheppard, managing director, Gleadell Agriculture said: "On Tuesday the USDA supply and demand report issued the following numbers:

World wheat production up to a new record of 670.75 mln/t –

up 6.51 mln/t versus July's report.

World wheat closing stocks up to 136.16 mln/t –

up 3.1 mln/t versus July's report.

World Corn (maize) production at 789.58 mln/t –

up 14.29 mln/t and stocks up 7 mln/t versus July's report.

"Stocks of soft winter wheat (as traded on Chicago) were raised to 174 million bushels, the highest level since 1950-51 and possibly the highest in history. In US physical markets cash wheat is trading at record discounts to the futures – approx £40 per tonne. Strategie Grains today raised their EU wheat production figure to 133.9mln/t – up 2.2 mln/t versus last month.

"The UK harvest continues to be delayed. To date yields have been good to excellent and quality is generally holding up so far. Good prices are available for spot movement for those who have managed to get going," he added.

Summary

Despite these bearish reports Chicago futures followed a general commodity rebound on Wednesday. UK wheat has been helped by a weaker £ versus €/$ and by spot demand for all grades of wheat. But recent rallies like these have been good selling opportunities and this may be no exception.