Wheat Staying Red for Start of Tuesday

Morning wheat trades have the market 2-3 cents in the red rolling into the Tuesday session. The overnight action in March SRW kept to a tighter 8 ¾ cent range from -3 ½ to +5 ¼. CME data showed the drop yesterday was long liquidation in nearby March and net new selling further out. The preliminary OI rose 1,585 contracts overall for SRW futures. The U.S. wheat market finished the Monday session with losses led by the KC market. HRW futures closed with double digit losses of as much as 15 cents, as the March contract closed just 3 cents off the low and 2.3% in the red. Chicago SRW futures fell by 9 ½ to 12 ¼ cents with losses of as much as 1.9%. Spring wheat stayed relatively firmer with 7 to 9 ¼ cent losses on the day. March was 2 ½ cents off the low at the close with a 1.3% loss on the day. 

Weekly wheat shipments were shown at 284,792 MT for the week that ended 12/12. The Export Inspections report marked that below the 317k MT last week and the 304k MT from the same week last year. USDA showed the season’s total volume reached 8.926 MMT compared to the 11.44 MMT at this point last year.

Chinese Customs data showed 660k MT of wheat was imported during November, compared to 1.01 MMT during Nov ’22. The full year’s 11.5 MMT remains 29.4% of last year’s pace. 

Egypt’s GASC issued an international tender for wheat, quantities to be decided today after the offers are made, for Feb delivery. Saudi Arabia’s GFSA announced 1.353 MMT of optional origin wheat purchases made via a weekend tender – with wire sources believing the bulk of it will end up being Russian. 

Mar 24 CBOT Wheat  closed at $6.17, down 12 1/4 cents, currently down 3 cents

May 24 CBOT Wheat  closed at $6.28, down 11 1/2 cents, currently down 3 3/4 cents

Mar 24 KCBT Wheat  closed at $6.27 3/4, down 15 cents, currently down 2 1/2 cents

Mar 24 MGEX Wheat  closed at $7.21 1/2, down 9 1/4 cents, currently down 2 3/4 cents