Wittal: USDA sees ample wheat stocks

June 10 — The U.S. financial markets continue to lose momentum slowly as little new news comes out to help markets push forward.

The Dow Jones June quote closed down 27 points today at 8,715, while the Canadian dollar closed down 0.78 cents at US90.13 cents.

Crude oil finished up $1.32, closing at US$71.33 per barrel.

Corn finished down eight to nine cents per bushel today, giving back what it gained yesterday, while beans finished down two to up seven cents per bushel.

Wheat finished down 16-21 cents per bushel on the various U.S. exchanges today; Minneapolis July wheat futures ended down 16.4 cents per bushel.

Canola finished down $1 to $2 per tonne for the day; barley finished down $1 per tonne, to close at $167.

The U.S. Department of Agriculture’s world crop report came out pretty much as expected, other than the fact that world wheat ending stocks rose slightly. U.S. wheat ending stocks for 2008-09 were left unchanged at 669 million bushels, a staggering 363 million bushels more than last year.

Ending stocks for 2009-10 were increased 10 million bushels to 647 million, while the average pre-report estimate had a reduction down to 606 million bushels. There are concerns of dry weather in parts of Europe, Australia, Russia and Canada that could reduce new-crop stocks going forward but as of today’s report, there are ample wheat stocks for the coming year.

Ending stocks for corn for both years were left the same as previous reports and bean inventories were reduced slightly, due to high-paced export demand that has been present the past few months, but not enough to continue the hard push that beans have been experiencing the past few weeks.

Canola sat rather quietly and waited for the report numbers to be released and with the modest adjustments that beans experienced, canola remained flat to down for the day. Feed barley was off $1 today to close at $167 per tonne.

That’s all for today. — Brian

— Brian Wittal has spent over 27 years in the grain industry, including as an elevator manager and producer services representative for Alberta Wheat Pool, a regional sales manager for AgPro Grain and farm business representative for the Canadian Wheat Board, where he helped design some of the new pricing programs. He also operates his own company providing marketing and risk management advice for Prairie grain producers. Brian’s daily commentaries focus on how domestic and world market conditions affect you directly as grain producers.

Brian welcomes feedback and information on market conditions in your area, such as current offering prices, basis levels, trucking premiums and special crops contracts. Contact Brian today.

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Brian Wittal

Brian Wittal has 30 years of grain industry experience and currently offers market planning and marketing advice to farmers through his company Pro Com Marketing Ltd.

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