Option Expiry Day for July Wheats

AM wheat quotes are down by double digits in the winter wheat markets and by 6 cents in MPLS spring wheat. Options expiration takes place at the close with the board currently working on an $7.30 to $7.20 pin for SRW. CME showed the 700P had the most OI with 4k contracts, and the calls are most active at 900, 800, and 750 strikes. Despite the strong losses for the corn and soybean markets, wheat ended Thursday in the black. Chicago SRW prices were up by 4 1/2 to 8 cents on the day. KC futures closed fractionally to 5 1/2 cents higher, save for the 2 3/4 cent giveback in July contracts. Spring wheat contracts were up a penny to 2 3/4 cents at the close. 

Ahead of the StatsCan acreage survey results, traders are looking for between 25.6m acres and 27m acres of 23/24 wheat. The average estimate is to see 26.5m acres compared to the 25.2m planted last season. Of that, durum is estimated at 5.9m acres. StatsCan will release the results on 6/28. 

Pre-report estimates for the weekly Export Sales data have wheat bookings between 100,000 MT and 400,000 MT for the week that ended 6/15. 

SovEcon reduced their outlook for Russia’s 23/24 wheat production by 1.2 MMT to 86.8 citing worsening crop conditions and evaporating soil moisture reserves. 

Jul 23 CBOT Wheat  closed at $7.39, up 4 1/2 cents, currently down 12 3/4 cents

Sep 23 CBOT Wheat  closed at $7.52 3/4, up 4 1/2 cents, currently down 12 1/2 cents

Cash SRW Wheat  was $6.93 3/4, up 4 3/8 cents,

Jul 23 KCBT Wheat  closed at $8.71, down 2 3/4 cents, currently down 14 cents

Cash HRW Wheat  was $8.28 1/4, down 1 5/8 cents,

Jul 23 MGEX Wheat  closed at $8.80, up 1 1/4 cents, currently down 6 1/2 cents