USDA inched stocks a little bit higher to 872 mb. That’s up 20 mb from last month due to USDA’s projection for lower exports. But with the exception of 2014-15, we are the tightest stocks we’ve seen for this time of year compared to the previous 5 years. Wheat stocks are not exceptionally tight but they are tight enough that if corn and beans do rally, wheat will be very quick to follow along.
Ending stocks for wheat projected at 872 mb. That is down for the 4th year in a row. Next year’s stocks projected to drop again to 774 mb. The projection from lower stocks over the long haul is a supportive feature for the market. But keep in mind, all of these markets even with tight stocks it’s going to be an extremely wild ride. We’re going to have big moves up and big moves down as well. The next 3 to 4 months are going to be extremely wild trading