Wheat At Overnight High into Day Session

Wheat prices are at their session highs with 2 ¾ to 6 cent gains across the complex in early Tuesday market action. Corn and soybeans were firmer on Friday, but wheat proceeded to push the downside into the weekend. Chicago wheat was down by 6 ½ to 8 ½ cents. Preliminary open interest showed net new selling, rising 7,290 contracts on the day. Spreads are firming, with China still on the hook for at least 55 mbu of SRW previously purchased and not shipped.  However, current prices are not competitive with Russian or Ukrainian offers, so the market needs to do a balancing act. KC HRW futures closed 8 ¼ to 9 cents lower. Minneapolis spring wheat prices were 3 ¼ cents weaker for the close. Recall the market will be closed on Monday in recognition of President’s Day. 

Weekly CoT data showed the spec traders were lightening their net short in CBT wheat via rolling existing shorts to new longs. On net the group reduced their net short by 11,066 contracts to 55,672 contracts – their lightest net short since August. The funds were shown with a 36,408 contract net short in KC wheat after some light net new selling for the week. Managed money funds were buying MGE wheat during the week which reduced their net short to 24,832 contracts. 

Russia’s Ag. Ministry lowered their wheat export tax 2.6% to 3,953 roubles/mt for the period ending Feb. 27th. 

Mar 24 CBOT Wheat  closed at $5.60 1/2, down by 6 1/2 cents, currently up 6 cents

May 24 CBOT Wheat  closed at $5.59, down by 8 1/4 cents, currently up 5 1/4 cents

Mar 24 KCBT Wheat  closed at $5.67 1/4, down by 8 1/2 cents, currently up 5 cents

Mar 24 MGEX Wheat  closed at $6.54 3/4, down by 3 1/4 cents, currently up 2 3/4 cents