Wheat Holding Mixed on Monday Morning
Wheat is showing a mix of trading activity as hard red contracts are trending higher on Monday morning. Last week, the wheat complex experienced losses across most contracts. Chicago SRW contracts saw decreases of 9 to 12 3/4 cents in the front months, with July recording a 27 1/2 cent drop for the week. Similarly, KC HRW futures were down by 9 to 11 3/4 cents on Friday, resulting in a weekly loss of 33 cents for July. MPLS spring wheat also saw declines of 8 1/2 to 11 3/4 cents on the day, with a weekly loss of 47 1/2 cents.
According to CFTC data, managed money increased their net short position by 1,675 contracts in the week ending on June 23, bringing it to a total of 71,206 contracts. In KC wheat futures and options, speculators switched back to a net short position of 1,285 contracts, a change of 8,905 contracts.
Looking ahead, all wheat acres are anticipated to be reported at 43.8 million acres in the upcoming June Acreage report. Spring wheat acres are expected to be around 9.5 million acres, with durum at 2 million acres based on a Bloomberg survey of traders.
In other news, a South Korean mill importer has issued a tender for 100,000 MT of wheat from the US and Australia, with 50,000 MT specifically from the US. The deadline for offers is set for Tuesday.
Argus estimates the Russian wheat crop at 91.2 MMT, reflecting an increase of 2.5 MMT from the previous estimate in April.
As for the latest market prices, Jul 26 CBOT Wheat closed at $5.78 1/4, down 12 3/4 cents, while Sep 26 CBOT Wheat closed at $5.89 3/4, down 11 3/4 cents. Jul 26 KCBT Wheat closed at $6.11, down 9 1/2 cents, and Sep 26 KCBT Wheat closed at $6.19 1/2, down 11 cents. Jul 26 MIAX Wheat closed at $5.76 1/2, down 11 3/4 cents, and Sep 26 MIAX Wheat closed at $6.05 1/4, down 9 3/4 cents.
It’s important to note that on the date of publication, Austin Schroeder did not hold any positions in the securities mentioned in this article. The information provided is for informational purposes only. This article was originally published on Barchart.com.
