Wheat futures on track to post their lowest finish of the year as USDA forecasts 'stable U.S. supplies

Wheat futures traded near the session's lows on Tuesday, poised to settle at their lowest level of the year, after the U.S. Department of Agriculture said its outlook (https://www.usda.gov/oce/commodity/wasde/wasde0220.pdf) for the 2019/ 2020 U.S. marketing year called for "stable supplies." It forecast an increase of 25 million bushels in U.S. exports, citing "competitiveness in international markets." It also cut its expectations for ending stocks by 25 million bushels, with the total at 940 million bushels continuing to mark a five-year low. John Payne, senior futures & options broker with Daniels Trading in Chicago, told MarketWatch that the agricultural market was "looking for a sign of future Chinese demand in the eyes of the USDA," but didn't get it. "The market will begin to focus on how much new supply is coming online," he said. March wheat fell 4 cents, or 0.7%, to $5.48 a bushel. A settlement around this level would be the lowest for a most-active contract since Dec. 24, according to FactSet data.

-Myra P. Saefong; 415-439-6400; AskNewswires@dowjones.com


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  02-11-20 1230ET
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