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USDA's January WASDE report raised projected 2017/18 U.S. wheat ending stocks by 29 million bushels and came in with winter wheat acreage above expectations. Winter wheat futures fell 2% to 3% after the release, with spring wheat down less than 1%.
Higher U.S. stocks and acreage add bearish pressure on wheat prices, and feed-wheat users face cheaper supplies relative to corn. The report reinforces a downward price pressure on wheat for feed buyers.
farmprogress.comJan 12, 2018After 1,006 past bearish report events, Wheat (SRW) moved a median +0.0% over 5 sessions (50% higher; middle half -1.6% to +1.8%), and +0.3% over 20.
After 138 past bearish report events, Wheat (HRW) moved a median +0.0% over 5 sessions (50% higher; middle half -2.9% to +2.4%), and +0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
