Hard Red Wheat Futures Market News and Commentary
SRW futures closed the last trade day of the week with 1 3/4 to 2 3/4 cent losses. The hard red wheats extended their premiums as KC rallied 1 3/4 to 5 cents on the day and MPLS gained 1 1/2 to 3 1/2 cents. HRW is now a $1.19 1/4 premium to SRW in the March contract and a 93 1/4 cent premium for new crop. MPLS spring wheat went home at a 52 1/4 cent premium to the March HRW price.
CFTC’s weekly Commitment of Traders report showed Chicago wheat specs were selling 8.4k contracts short through the week that ended 11/24. That expanded the group’s net short to 73,933 contracts – the most since 2018 when the group peaked at 83,502 contracts net short. In KC wheat, the weekly update showed the funds were 459 contracts less net short as of Tuesday, given slightly more new buyers than new spec sellers. The managed money funds were adding to both sides in MPLS wheat too, but were 135 contracts more net short from Tuesday to Tuesday.
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