Friday Bounce For Wheat

At the close for the Friday session, the wheat futures were 15 1/4 to 17 1/2 cents higher in CBT to 2-3 1/2 cents higher in spring wheat. KC HRW futures ended Friday’s trade with on an 8 to 12 1/2 cent recovery. The cumulative move for the week was mixed as Sep SRW was a net 1.05% higher Friday to Friday, though HRW gave back 1.33% and HRS was down 2.5% in the Sep contract. 

The CFTC’s weekly CoT report showed managed money traders were covering SRW shorts and adding longs through the week that ended 8/30. That left the group 3,822 contracts less net short at 22,247. For HRW, the funds were 3,033 contracts more net long to 12,458. Spring wheat spec traders reduced exposure on both sides for a net 23 contract weaker net short of 1,441 contracts. 

Ukraine’s Agri Council lobby group expect to see ~50% reductions to winter grain planted area. Last year’s area included 8.4m HA (~20.8m acres) with 6.2m HA (~15.35m acres) of wheat. 

In Canada, Saskatchewan’s wheat harvest was 23% complete at 8/29 - compared to 26% on average. BAGE reported that 23.7% of Argentina’s wheat area is facing poor conditions and will have below trend yields. 

Sep 22 CBOT Wheat  closed at $7.93, up 17 1/2 cents,

Dec 22 CBOT Wheat  closed at $8.11, up 16 3/4 cents,

Cash SRW Wheat  was $7.41, up 17 1/2 cents,

Dec 22 KCBT Wheat  closed at $8.77 3/4, up 9 3/4 cents,

Cash HRW Wheat  was $8.34 3/4, up 10 5/8 cents,

Dec 22 MGEX Wheat  closed at $8.90, up 3 1/2 cents,