Wheat futures are 6 to 12 cents lower on Monday morning, with KC HRW the weakest class on harvest pressure. French milling wheat (MATIF) is also lower. Chicago July futures have closed lower for 8 consecutive sessions. Chicago SRW was down 11 ¼ to 12 ½ cents on Friday. Preliminary open interest shows long liquidation, down 16,106 contracts. KC HRW, which had closed higher on Thursday, was down 12 ¼ to 13 cents. MPLS spring wheat prices declined by 12 ¼ to 12 ¾ cents.
Turkey is halting wheat imports until October to protect domestic producer prices at and after harvest. This doesn’t affect world supply or full year consumption, but impairs export potential right as most Northern Hemisphere countries are beginning winter wheat harvest. Trade sources indicate Tunisia bought 50,000 MT of wheat for July shipment.
For Wednesday’s USDA Crop Production report, the average trade estimate for All Wheat in a Reuters survey was 1.88 billion bushels. That would be up from 1.858 billion in the USDA May report. According to three different surveys, a number of analysts are expecting production increases for all three winter wheat classes. Trade ideas for wheat ending stocks are UNCH for old crop at 688 million and 778 million for new crop.
Friday afternoon’s Commitment of Traders report showed the spec funds were increasing their net short position in CBT wheat futures and options during the week ending June 4. They added a net 6,253 contracts and were still net short 31,684 on that date.
Jul 24 CBOT Wheat closed at $6.27 1/2, down 12 cents, currently 6 lower
Sep 24 CBOT Wheat closed at $6.49 1/4, down 12 1/2 cents,
Jul 24 KCBT Wheat closed at $6.65 3/4, down 12 1/4 cents, currently down 11 1/2
Sep 24 KCBT Wheat closed at $6.79, down 13 cents,
Jul 24 MGEX Wheat closed at $6.94 1/2, down 12 1/4 cents, currently down 6 3/4 cents
Sep 24 MGEX Wheat closed at $7.03 1/2, down 12 3/4 cents,
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Disclosure Policy here.
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