CBOT wheat hits 8-month top on USDA wheat production, stocks data

CHICAGO: Chicago Board of Trade wheat futures surged on Wednesday, with the benchmark December contract hitting its highest in eight months after the US Department of Agriculture's US wheat production and Sept. 1 stocks figures came in below trade expectations.

The USDA's Sept. 1 stocks figures for corn and soybeans also fell below expectations, lifting CBOT corn and soybean futures.

CBOT December soft red winter wheat settled up 28-1/2 cents at $5.78 per bushel after reaching $5.87, its highest since Jan. 24.

K.C. December hard red winter wheat ended up 33-3/4 cents at $5.09-3/4 a bushel while MGEX December spring wheat unofficially ended up 14-1/2 cents at $5.39 a bushel.

The USDA lowered its estimate of US 2020 total wheat production to 1.826 billion bushels, from 1.838 billion previously.

K.C. hard red winter wheat futures gained relative to CBOT and MGEX wheat futures after the USDA cut its estimate of US 2020 hard red winter wheat production to 659 million bushels, down from 695 million previously and below a range of trade expectations.

The USDA reported Sept. 1 US wheat stocks at 2.159 billion bushels, toward the low end of trade expectations.

Ahead of Thursday's weekly USDA export sales report, traders expected the government to show US wheat sales in the week ended Sept. 24 at 200,000 to 500,000 tonnes.