Wheat Back to Heading Higher on Russia Frost Fears
The wheat complex is posting double digit gains across most contracts this morning. Wheat saw selling across all three markets on Wednesday. Chicago wheat contracts were down 8 ¼ to 9 ½ cents on the day. Kansas City futures were down 11 to 15 ½ cents at the close to lead the charge to the downside for the winter wheat contracts. MPLS spring wheat futures were down 6 to 16 ¼ cents.
There have still been zero delivery notices vs. KC May futures, with the oldest long dated April 30. There were 20 put out vs. May CBT wheat.
Forecasts for rain are sneaking into much of the Southern Plains over the next week, an areas which has remained dry so far this spring. Additional pressure came from forecasts of rain in drier parts of the Russian growing regions. Reports of frost damage in Eastern Ukraine and southern Russia were ignored.
Traders are expecting Thursday morning’s Export sales report to show net cancellations of 100,000 MT to sales of 100,000 MT for old crop wheat as we enter the last month of the marketing year. New crop sales are estimated in a range of 200,000-600,000 MT.
Egypt purchased 420,000 MT of wheat in their latest tender on Wednesday. Of that total, 360,000 MT was Russian origin, with 60,000 MT Romanian.
Jul 24 CBOT Wheat closed at $6.34, down 8 3/4 cents, currently up 10 1/4 cents
Sep 24 CBOT Wheat closed at $6.55, down 8 3/4 cents, currently up 9 3/4 cents
Jul 24 KCBT Wheat closed at $6.48 1/2, down 15 1/2 cents, currently up 15 cents
Sep 24 KCBT Wheat closed at $6.61 1/2, down 14 3/4 cents, currently up 14 1/4 cents
Jul 24 MGEX Wheat closed at $7.02 3/4, down 16 1/4 cents, currently up 11 1/2 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 Barchart Disclosure Policy here.