Red Start for Monday Wheat Trade

Wheat is trading off the overnight lows, but still 7 to 13 cents in the red across the three U.S. markets in early Monday futures action. The front U.S. wheat futures faded into the weekend, but had held onto a weekly gain. Chicago futures ended Friday with 11 ¼ to 12 cent losses, which left March at a net 7c gain to close over the $6 mark. Preliminary open interest rose 6,684 contracts on the down day in the CBT wheat. KC wheat futures were down by 9 ½ to 12 ¼ cents on the day, with March at a net 16 ¾ cent gain for the week. Spring wheat futures finished the last trade day of the week with 6 to 7 cent losses, but March held onto an 8c gain for the week’s move.  Argentina indicated that they have a deal to allow exports of Argentine wheat to China. 

The weekly CoT report showed managed money spec traders were closing Chicago wheat positions during the week that ended 1/23. That on net reduced their net short by 4k contracts to 65,541. The KC wheat specs were adding positions, but the net new buyers offset the net new sellers for a 312 contract weaker net short of 38,340 contracts as of 1/23. The funds were also adding positions in Minneapolis wheat during the week, with 4.7k new contracts in play (37,666 total) and a 30,290 contract net short. 

SovEcon raised their outlook for Russian wheat production by 900k MT to 92.2 MMT. That remains 600k MT below this season’s production figure.   The Russian Ag Ministry raised the wheat export tax by more than 1% for this week, to 3,260 roubles/MT. 

Mar 24 CBOT Wheat  closed at $6.00 1/4, down 12 cents, currently down 7 3/4 cents

May 24 CBOT Wheat  closed at $6.10 3/4, down 11 1/4 cents, currently down 8 cents

Mar 24 KCBT Wheat  closed at $6.24 3/4, down 12 1/4 cents, currently down 10 cents

Mar 24 MGEX Wheat  closed at $7.03 1/2, down 5 1/2 cents, currently down 7 cents