Weaker Start for Wednesday Wheat

Wheat futures are down by as much as 12 1/2 cents across the domestic classes this morning. CBT SRW futures stayed in the black for Tuesday’s close, but faded 13 cents from their intra-day highs. Short covering was noted in July, with about a week and half until July options expire. KC HRW and MGE HRS prices flipped red during the afternoon slip. Front month KC futures were down by 2 to 4 3/4 cents on the day. The nearby Minneapolis wheat market settled 3 to 5 1/4 cents in the red. 

The Indian government instituted a limit on wheat inventory per entity, with the idea of dissuading hoarding and boosting market availability of the grain stocks. The limits will be 10 MT for retailers, 3k MT for traders and wholesalers, and 75% of annual production for producers and processors. In addition, the government is set to sell 1.5 MMT of government stocks to the open market.  

Neighbor China is struggling to buy sprouted and potentially moldy wheat (in Henan and surrounding provinces) and keep it out of the food chain. The heavy rain event stabilized declining wheat prices in China, but won’t take that many bushels away from production. 

Jul 23 CBOT Wheat  closed at $6.36 1/4, up 2 1/2 cents, currently down 9 1/2 cents

Sep 23 CBOT Wheat  closed at $6.48, up 2 cents, currently down 9 1/2 cents

Cash SRW Wheat  was $5.90 7/8, up 3 1/4 cents,

Jul 23 KCBT Wheat  closed at $7.91 3/4, down 4 3/4 cents, currently down 12 1/2 cents

Cash HRW Wheat  was $7.51 5/8, down 5 1/8 cents,

Jul 23 MGEX Wheat  closed at $8.09 3/4, down 4 1/2 cents, currently down 6 3/4 cents