Technical purchases and the poor state of winter wheat stocks in the US Plains caused a moderate increase in wheat futures yesterday in Chicago. The WASDE report surprised with high estimates for the US and world wheat ending stocks. The US inventory estimate at the end of the 2017/18 season, at 1.064 billion bushels, exceeded expectations from 0.989 to 1.060 billion bushels. Similarly, the estimate of global wheat stocks at the end of the 2017/18 season, which estimates the USDA at 271.22 million tonnes. Analysts expected global ending stocks to range from 266.50 to 271 million tons. Institutional investors yesterday bought 4,000 lots of CBoT SRW wheat. The eCBoT is trading with losses this morning. At the Euronext in Paris, the wheat futures unevenly closed. In France, the railway workers strike creates logistical problems and supports cash market prices. Unions called for a strike lasting up to three months to protest the rail reform of the Macron government. Exports on the cash market in Hamburg are running continuously, but at too low a level for this season. The quotes for bread wheat with 12% protein for delivery in April dropped to 3 euros via Paris May 18.
