We really don't have the fundamental support that we had several weeks ago, (as) added moisture continues to come across the Plains states, and even in the Midwest. Soil moisture has improved dramatically for the soft wheat crop.
That could give the Kansas City wheat market some support.
This means we did add to the U.S. ending stocks. USDA's U.S. wheat ending stocks estimate of 542 million bushels is still adequate to our needs.
The market is pretty well fixated on the weather and production implications.
Because there is so much new information in this report, we could be trading this for awhile.
We've had real good corn sales this past month and export inspections are averaging what we need to reach the USDA goal of 1.85 billion bushel estimate for the year.
In a fundamental sense, there's really nothing going on in the market right now, so prices should just kind of consolidate and drift in a sideways pattern - unless we get a day like Tuesday where the funds come in and buy 19,000 contracts.
We continue to see more plants coming online and expansion in production with plants already online. Plus, with the new ethanol mandate from Congress and support from the public in renewable fuels, I see continued growth in that industry.
We opened lower ... on the increase in the ending stocks figure in the U.S. and the increase in the world ending stocks. We digested that report and really didn't generate much as far as any follow-through trade. The world ending stocks were a little bit of a surprise being up that sharply, though an adjustment to the Brazilian numbers and then also an increase in Chinese production.