Weekly Market Analysis: Wheat Price Searching for the Bottom

The wheat price continued a downward spiral during the first part of the week as traders remembered the numbers released by the USDA in their monthly supply and demand report. The price made a spike low on Wednesday with a decent closing price. The price stabilized the last two days as wheat searches for value. This week’s export sales report should help the wheat price bounce back.

The USDA’s weekly sales report for wheat delayed until Friday because of a holiday listed a total of 887,000 metric tons. This was three times the average trade estimate. In addition, the number was a marketing year high. Eighteen countries purchased wheat with amounts larger than normal. With the drop in price the first part of this week, next Thursday’s sales number should be strong.

Iraq announced they filled a wheat tender during the week by securing 200,000 metric tons from the United States and 100,000 metric tons from Russia. The CCC tendered for a total of 108,000 metric tons of wheat for donation to three North African countries. Saudi Arabia bought 440,000 metric tons from the European Union. Bangladesh filled their old wheat tenders totaling 400,000 metric tons with Black Sea wheat. World wheat importers were active as their saw value.

Demand is the key for the wheat price to reverse the trend. Traders will have a close eye on next week’s weekly export sales report.