CBOT wheat rises after USDA lowers US carryout more than expected
CHICAGO: Chicago Board of Trade (CBOT) wheat futures ended higher on Tuesday after the US Department of Agriculture made deeper-than-expected cuts to its estimates for US ending stocks, traders said.
* CBOT July soft red winter wheat ended up 10-1/2 cents, or 2.1%, at $5.18 a bushel.
* K.C. July hard red winter wheat ended up 4-1/2 cents at $4.57-1/2 a bushel, while MGEX July spring wheat settled up 1 cent at $5.69-1/2 a bushel.
* The USDA, in a monthly report, cut its estimate for 2018/19 US wheat ending stocks to 1.102 billion bushels from 1.127 billion in May. The estimate was below analysts' expectations for 1.121 billion bushels.
* The report increased the estimate for 2018/19 wheat exports to 950 million bushels from 925 million last month.
* The USDA also reduced its estimate for 2019/20 wheat ending stocks to 1.072 billion bushels from 1.141 billion in May. Analysts were expecting 1.118 billion.
* Spillover support from gains in the corn market also helped support wheat, traders said.