Wheat Starting Red into New Week

Wheat is trading 3 cents weaker in Chicago and 4 to 6 cents lower in the KC and MGE markets so far this morning. The wheat market was pounded lower all last week as the market sought a level that would generate a meaningful volume of export sales transactions. That changed on Friday, as shorts bought back positions to protect profits against weekend surprises, and there were reports of additional explosions and fires near the large Russian port of Novorossiysk. Chicago futures had the biggest bounce, up 16 to 23 ¾ cents on the day.  Kansas City HRW futures were up 14 to 20 ½ cents. MPLS spring wheat gained 11 ¾ to 15 cents. 

The Friday afternoon Commitment of Traders report showed the managed money spec funds clinging to a net long of 587 contracts in KC HRW futures on August 15. They had reduced it by 4,670 contracts during the reporting week. They remained heavily net short in Chicago SRW at -65,590 contracts, expanding the position by 10,195 contracts during the reporting week. 

Export commitments of shipped and unshipped sales for all wheat are now 36% of the USDA forecast. 

Rumors continue that India is negotiating to buy a slug of Russian wheat at a steep discount. Russia hiked their wheat export tax to reflect the weakness in the ruble (and a strong shipping pace), going from 3,713 rubles/MT to 4,269 per. 

Sep 23 CBOT Wheat  closed at $6.13 1/4, up 23 3/4 cents, currently down 3 cents

Dec 23 CBOT Wheat  closed at $6.39, up 23 3/4 cents, currently down 3 1/4 cents

Cash SRW Wheat  was $5.46 5/8, up 23 7/8 cents,

Sep 23 KCBT Wheat  closed at $7.53 1/2, up 20 1/2 cents, currently down 5 3/4 cents

Cash HRW Wheat  was $6.92 1/2, up 20 1/2 cents,

Sep 23 MGEX Wheat  closed at $8.01 3/4, up 14 cents, currently down 5 1/4 cents