Friday Wheats Stall and Close Red

After an attempt at a relief rally into the weekend, the wheat markets sold off into the close and settled near the low for the day. Chicago futures ended with 1 3/4 to 3 1/4 cent losses on Friday, leaving the March contract at a net 48 1/2 cent loss for the week. KC wheat futures ended with 5 3/4 to 7 3/4 cent losses on Friday. Spring wheat settled the last trade day of the week down by 1 1/4 to 7 1/4 cents. New crop September MGE wheat gave back 22 3/4 cents on the week and is still a 26 cent discount to the lead month. 

The Commitment of Traders report had managed money funds 52,715 contracts net short in CBT wheat as of 1/03. That was a 3,497 contract weaker net short after short covering through the week. In KC wheat, the funds were 94 contracts less net long to 1,757 as of 1/03. Spring wheat spec traders were 468 contracts less net short to 2,831 contracts. 

USDA’s Export Sales report, delayed due to the New Year’s holiday, had 47,142 MT of wheat sales for the week that ended 12/29. That was a MY low, but was only 3% less than the same holiday week last year. Shipments were also a MY low for the week, with just 81.5k MT exported. Accumulated shipments were tallied at 10.662 MMT – trailing last year by 3.5%. 

Egypt’s GASC is on the market for wheat, with offers due by Jan 10. The World Bank backed Food Security and Resilience Support Program is backing the loan. China is set to auction 140k MT of wheat from state reserves on 1/11 – including wheat acquired in 2014-2017. 

Mar 23 CBOT Wheat  closed at $7.43 1/2, down 3 1/4 cents,

May 23 CBOT Wheat  closed at $7.51 1/2, down 3 1/4 cents,

Cash SRW Wheat  was $6.84 1/8, down 3 1/4 cents,

Mar 23 KCBT Wheat  closed at $8.32, down 7 3/4 cents,

Cash HRW Wheat  was $7.97 3/4, down 8 cents,

Mar 23 MGEX Wheat  closed at $9.01 3/4, down 7 1/4 cents,