Demand Tightens 2020/21 US S&Ds While Intentions Reduce 2021 Supplies

Wheat’s latest stocks & export trend suggest the 20 million cut in exports resulting in 855 million 2020/21 ending stocks. Last week’s higher 2021 seedings could up wheat’s stocks by 80 million to 778 million bu. vs the USDA’s Ag Outlook (WEAT).

What’s Ahead

Tightening old-crop corn & soybean supplies and the USDA’s modest increase in the producer’s 2021 planting intentions have added new uncertainty to 2021/22’s two major crops. Given the need for no additional South American crop shrinkage & an uneventful US planting & growing season, this situation seems unlikely.

Hold corn & beans sales, but finalize 2019/20 Chi/KC wheat sales at $6.30 & $5.75 OB.

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Disclaimer – The information contained in this report reflects the opinion of the author and should not be interpreted in any way to represent the thoughts of any futures brokerage firm or its ...

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