Wheat futures will resume trading at 8:30 AM CST. Wheat futures rallied back by double digits on Friday to end 2022 with gains. CBT SRW futures were up 2% to 2.3%, leaving March at a net 16 cent gain for the week. The March contract ended 2022 with a huge yearly range of $5.50/bu and a net 20 1/4 cent gain. The continuation chart for SRW futures also had a 21 cent gain for the year. Friday’s trade left KC wheat 21 cents higher and MPLS spring wheat 13 3/4 to 24 3/4 cents higher.
The Commitment of Traders report showed managed money funds closed 3.6k shorts through the week that ended 12/27. They were still net short 56,212 contracts. In KC wheat the funds were 606 contracts more net long through the week, also via light short covering. Spec traders were 1,128 contracts less net short as of 12/27 for Minneapolis wheat.
USDA reported 478,122 MT of wheat export sales for the week that ended 12/22. That was up 43% on the week and more than double the same week last year, as analysts weren’t expecting more than 450k MT going in. Total commitments stood at 14.922 MMT as of 12/22, down by 6% from last year. New crop forward sales were 64k MT, trailing the forward sales into 21/22 by 21%.
Argentina has harvested 91.4% of their 22/23 wheat crop according to BAGE. The BAGE cut their estimate of the 2023 Arg wheat crop to 12.4 MMT due to lower than expected new crop yields. The BAGE crop condition rating on Arg corn was UNCH at 15% G/E vs. 57% average.
The Rosario Grains Exchange recently lowered their output forecast by 2.5% to 11.5 MMT citing the drought. USDA’s Dec WASDE had Argentina with a 12.5 MMT crop compared to 15.5 MMT in November and 22.15 MMT in 21/22.
Mar 23 CBOT Wheat closed at $7.92, up 18 cents,
May 23 CBOT Wheat closed at $7.98 3/4, up 17 3/4 cents,
Cash SRW Wheat was $7.33 3/8 on Friday, up 18 5/8 cents,
Mar 23 KCBT Wheat closed at $8.88, up 21 1/2 cents,
Cash HRW Wheat was $8.49 3/8 on Friday, up 21 1/2 cents,
Mar 23 MGEX Wheat closed at $9.38 3/4, up 24 3/4 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.
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