Weekly Market Analysis: Price Slides on Carryout Report

The positive in Tuesday’s grain reports was the winter wheat planted acreage number. Winter wheat acres for the United States dropped 6.2 million acres with hard red winter wheat showing the largest decline. U. S. winter wheat plantings of 37.1 million acres are the smallest number since 1913. Kansas producers planted 8% less acres, which is the smallest number since 1957. Some of the lost winter wheat acres in the northern states will move to spring wheat. The rest of the acres will move to fall crops.

Selling in the wheat market continued the rest of the week with the March Kansas City wheat contract losing 48 cents for the week and closing next to the low of this move. This contract closed three cents above the last reaction low and major support. Bearish analysts feel the price will return to contract lows before support is uncovered. The wheat market needs to see an improvement in demand to excite the bullish traders.