Chicago Board of Trade (CBOT) July wheat futures settled up 2-1/4 cents on Wednesday at $4.31-3/4 per bushel on technical buying, including short-covering, and spillover strength from corn, traders said. K.C. July hard red winter wheat settled up 1/2 cent at $4.39-1/4 a bushel and MGEX July spring wheat rose 4 cents at $5.45.

The US Department of Agriculture in its first supply/demand forecasts for the 2017/18 marketing year put global wheat ending stocks at 258.29 million tonnes, above even the highest level in a range of trade expectations. The USDA also raised its forecast of global 2016/17 wheat ending stocks to 255.35 million tonnes, topping trade expectations.

The USDA estimated US winter wheat production for 2017/18 at 1.246 billion bushels, below an average of trade estimates for 1.293 billion. Analysts cautioned that the figure likely failed to account for potentially damaging storms that swept the Plains and Midwest production areas on the weekend of April 30. FranceAgriMer cut its forecast of French 2016/17 soft wheat ending stocks as the farm agency increased its outlook for exports. The CBOT reported 17 deliveries against the CBOT May wheat contract and 30 K.C. wheat deliveries. There were no deliveries of MGEX May spring wheat.

Copyright Reuters, 2017