Wheat Falls Out of the Gates

Futures are heading lower this Monday morning, with the hard rec contracts leading the way with double digit losses. Wheat bulls were feeling better heading into the weekend, as Friday prices were higher, though they’re likely not so much waking up this morning.  Chicago contracts were up 11 to 19 ¼ cents across the board, with May getting thin and July up just a tick on the week. Kansas City futures were 6 ½ to 14 cents in the green across most contracts, as July was down 4 cents from last Friday. MPLS spring wheat futures were 4 ¾ to 8 ¼ cents higher, as July carried the load on the week, up 11 cents.

There were 102 contracts issued against May CBT wheat overnight. The oldest long is dated May 1.  There have still been zero delivieries against May KC wheat. 

The 7-day QPF from NOAA shows very light precip totals in the western portion of the Plains over the next week. Parts of the eastern Plains are expecting some precip totals, with SRW expecting anywhere from 1 to 3 inches.

CFTC Commitment of Traders data pegged spec funds in CBT wheat slashing 28,318 contracts from their net short position as of 4/30 at 47,886 contracts. That was the smallest net short since last July. In KC wheat, they cut a large 18,598 contracts from that net short position to 29,610 contracts as of Tuesday.

Dryness concerns in Russia have caused IKAR to trim their Russian wheat crop estimate by 2 MMT to 91 MMT. Forecasts are shifting to a drier pattern over the next couple weeks. 

May 24 CBOT Wheat  closed at $6.06, up 24 1/2 cents, currently down 8 cents

Jul 24 CBOT Wheat  closed at $6.22 1/2, up 18 1/4 cents, currently down 7 3/4 cents

May 24 KCBT Wheat  closed at $6.60, up 23 cents, currently down 14 cents

Jul 24 KCBT Wheat  closed at $6.50 1/4, up 13 3/4 cents, currently down 13 1/2 cents

Jul 24 MGEX Wheat  closed at $7.14 1/2, up 5 1/4 cents, currently down 12 cents