Wheat Squares Up for the Weekend

After another sharply lower week of trade, wheat futures squared up with Friday gains into the weekend. Chicago SRW prices ended Friday 1.7% to 2% in the black, but May was still down by 29 1/2 cents for the week. May is a 12 1/2 cent carry to March ahead of Tuesday’s expiration. KC HRW futures ended the day with some 20 cent gains in the nearbys, which helped mitigate May’s weekly drop to 18 cents. May futures were still below the $8 mark at the close and were a 13 cent discount to the March. The spring wheat futures market ended Friday 8 1/4 to 9 cents higher on Friday. May HRS was a 48 cent loss from Friday to Friday. 

The latest CoT report showed managed money SRW traders were 72k contracts net short as of 2/21. That was their strongest net short since May of 2019. In KC wheat, the spec traders were 15,974 contracts net long and building. Managed money was also shown closing MGE shorts with a 3,136 contract net long as of two Tuesday’s ago. 

Russian delegation will meet with two UN members in Geneva Switzerland to discuss their side of the Grain Corridors export deal on March 13. UN Secretary General was meeting with Ukraine’s president earlier this week for their side of the negotiations.

Russia’s president Putin spoke via phone with the president of Egypt El-Sisi on Thursday to discuss food and energy export opportunities, including the Black Sea Grain Corridor deal. 

Mar 23 CBOT Wheat  closed at $6.66 3/4, up 13 1/4 cents,

May 23 CBOT Wheat  closed at $6.79 1/4, up 13 1/2 cents,

Cash SRW Wheat  was $6.23 3/8, up 13 1/2 cents,

Sep 23 KCBT Wheat  closed at $7.90 1/2, up 18 3/4 cents,

Cash HRW Wheat  was $7.62 3/4, up 21 cents,

Sep 23 MGEX Wheat  closed at $8.20, up 8 3/4 cents,