Wheat Holding onto Monday Gains

The wheat complex is rallying on Monday, with gains across the three markets. Chicago SRW futures are posting 13 to 15 cent gains in the front months on Monday. There was single delivery issued against May CBT wheat on Friday higher, with 16 deliveries against May KC wheat. KC HRW futures are 8 to 10 cents higher on Monday. MPLS spring wheat are up 5 to 7 cents at midday.

Monday morning’s Export Inspections report showed 511,436 MT (18.79 mbu) of wheat shipped in the week of 5/7. That was 1.78% above last week and 26.23% above the same week last year. South Korea was the largest destination of 111,630 MT, with 85,565 MT shipped to Mexico and 72,717 MT to Japan. The marketing year total is now 22.875 MMT (840.5 bbu) of wheat shipped since June 1, which is 12.58% above the same period last year.

CFTC data showed managed money flipping back to a net short position of 9,903 contracts in CBT wheat futures and options by a move of 20,567 contracts. In KC wheat futures and options, specs were adding another 7,245 contracts to their net long to 37,869 contracts.

Tuesday will see the release of the May WASDE, with old crop stocks down 8 mbu at 930 mbu according a Bloomberg survey. New crop data will also be released, with US stocks seen at 845 mbu and a range of 759 to 955 mbu. Crop Production data will be released, with analysts looking for 1.211 bbu of winter wheat production and all wheat estimated at 1.747 bbu. HRW is estimated at 638 mbu, with SRW at 337 mbu. 

May 26 CBOT Wheat  is at $6.13 1/4, up 5 3/4 cents,

Jul 26 CBOT Wheat  is at $6.33 1/2, up 14 1/2 cents,

May 26 KCBT Wheat  is at $6.72 1/2, up 17 3/4 cents,

Jul 26 KCBT Wheat  is at $6.84 1/2, up 8 3/4 cents,

May 26 MIAX Wheat  is at $6.69 3/4, up 5 1/2 cents,

Jul 26 MIAX Wheat  is at $6.85 1/4, up 6 3/4 cents,