Strong Start in Wheat Market

Wheat futures are working on double digit gains in Chicago so far this morning, with gains of 5-11 cents in the hard reds. The wheat market was down double digits on Friday. Chicago prices settled within 5 cents of the day’s low on 10 to 12 cent losses. KC wheat futures closed 11 3/4 to 12 3/4 cents in the red, with March within a nickel of the day’s low. Spring wheats ended 7 3/4 to 8 1/2 cents weaker on the day. 

There were zero delivery notices against KC December wheat over the weekend.  Deliveries against Chicago dwindled to 52 contracts, with 44 stopped by a Cunningham customer.

The weekly CFTC Commitment of Traders report had CBT wheat specs at 63,382 contracts net short as of 12/6. That was a 9.3k contract larger net short driven by 12.5k new shorts through the week. It is nowhere near record levels, however. In KC wheat, the CFTC had managed money funds 7,400 contracts less net long to just 9,724 contracts – a 15-wk low. Managed money firms were selling short spring wheat through the week and expanded their net short by 1,619 contracts to 3,048 as of 12/6. 

The USDA’s monthly WASDE report made no domestic changes for wheat – outside of the dime reduction in expected average cash price to $9.10.  On the global stage, production was down by 2 MMT, as Australia’s 2 MMT boost offset a 3 MMT reduced Argentine and a 1 MMT lighter Canadian crop. Wheat exports were upped by 2.2 MMT, with Australia and Russia capturing the market share. Carryout was 267.33 MMT compared to the 268 MMT trade average guess and 267.5 MMT Nov figure. 

Dec 22 CBOT Wheat  closed at $7.12 3/4, down 11 1/2 cents, currently UNCH

Mar 23 CBOT Wheat  closed at $7.34 1/4, down 12 cents, currently up 13 1/4 cents

Cash SRW Wheat  was $6.68 ½ on Friday, down 11 7/8 cents,

Mar 23 KCBT Wheat  closed at $8.33, down 11 3/4 cents, currently up 10 1/4 cents

Cash HRW Wheat  was $7.96 3/8 on Friday, down 11 1/2 cents,

Mar 23 MGEX Wheat  closed at $9.01 1/2, down 8 cents, currently up 7 cents