Wheat Rallies Off Friday Lows, Still Red for Close

The afternoon portion of Friday’s wheat market saw strength to limit the losses for the day. CBT SRW futures were down by 6 to 9 cents at the bell. The nearbys finished off their lows by at least 4 cents. May SRW was down by 20 3/4 cents for the week, and is now below the price of May corn – marking only the second time (2012) in history for the front month spread. KC HRW futures were 10+ cents off their lows at the close, but still mostly lower. May KC wheat closed a half cent in the black for the day, though the other front months were still as much as 3 cents weaker. May HRW futures were down 38 cents for the week. The MPLS spring wheat market ended Friday trading 5 1/2 to 9 1/2 cents in the red. May HRS prices were down by 29 1/4 cents for the week. 

Weekly Commitment of Traders data showed net new buying from the SRW spec traders. The group reduced their net short by 1.3k contracts to 102,983 as of 4/18. Managed money funds were 1,362 contracts more net long in KC wheat as well. Their net long was marked at 10,591 contracts as of the Tuesday settle. CFTC confirmed spring wheat spec traders were 38 contracts net long on 18k OI as of 4/18. 

HRW states have much needed rain in the forecast, with NOAA’s 7-day QPF showing 1-3” in TX, OK, KS, and CO. NE will miss out on anything more than 3/4” of an inch through the week. 

May 23 CBOT Wheat  closed at $6.61 3/4, down 6 cents,

Jul 23 CBOT Wheat  closed at $6.73, down 7 cents,

Cash SRW Wheat  was $6.06 5/8, down 6 1/2 cents,

May 23 KCBT Wheat  closed at $8.40 3/4, up 1/2 cent,

Cash HRW Wheat  was $7.95 7/8, down 3/4 cent,

May 23 MGEX Wheat  closed at $8.47, down 8 3/4 cents,