Wheat March 2012 (ZWH12)

Wheat is trading are trading higher but off earlier session highs and trading near the lower end of their session price range. Traders were expecting export sales for last week at 330,000-550,000 MT. USDA put the actual figure at 72,400 MT for the tail end of the 2011/12 marketing year, a marketing year low but net then sales for 2012/13 were 754,600 MT pushing net sales above trade expectations. The International Grains Council forecasts the U.S. will export the majority of world wheat in the 2011/12 marketing year. The IGC also anticipates a draw down in World wheat production from last year for 2012/13. The IGC expects wheat harvest will come in at 670.5 MMT for the 2012/13 marketing year down from USDA’s May number of 677.56 MMT and the IGC April forecast of 676.1 MMT. Rain entered the extended forecast for some of the troubled areas in the Great Plains and also in Russia. Merchants still expect the beginning of harvest in the largest state (Kansas) to put pressure on the cash market, unless we see more lower-than-expected yields coming in. Ohio SRW basis continues to be unusually firm.

Jul 12 CBOT Wheat is at $6.70 3/4, up 5 1/4 cents,
Jul 12 KCBT Wheat is at $6.92 3/4, up 6 1/4 cents,
Jul 12 MGEX Wheat is at $7.82, up 6 3/4 cents
Sep 12 MGEX Wheat is at $7.79 1/4, up 6 1/2 cents