Wheat Rallying on Monday

The wheat complex is posting a round of Monday morning strength, as escalating tensions in the Black Sea are giving the market a risk on approach. Chicago SRW futures are up 12 to 13 cents so far on the day. KC HRW contracts is posting gains of 13 to 14 1/4 cents on the session. MPLS spring wheat is up 12 to 14 cents.

Over the weekend President Biden gave the greenlight to allow Ukraine to use US long range missiles inside of Russia. The wheat market has been muted in much reaction to the nearly 3 year conflict, though this does provide some short covering fuel.

This morning’s Export Inspections report showed a total of just 196,281 MT (7.2 mbu) of wheat shipped in the week that ended on November 14. That was down 44.44% from last week an 48.08% lower than the same week last year. Mexico was the largest destination of 63,669 MT, with 57,744 MT headed to Taiwan and 43,713 MT to South Korea. Marketing year shipments have totaled 10.325 MMT (379.37 mbu) to date, which is 31.37% above the same week last year.

Commitment of Traders data showed CBT wheat speculators as increasing their net short position by 14,526 contracts to 45,307 contracts as of last Tuesday. In KC wheat, managed money was adding 11,018 contracts to their net short at 25,098 contracts.

Dec 24 CBOT Wheat  is at $5.48 3/4, up 12 1/4 cents,

Mar 25 CBOT Wheat  is at $5.67, up 13 cents,

Dec 24 KCBT Wheat  is at $5.54 1/4, up 14 1/4 cents,

Mar 25 KCBT Wheat  is at $5.65 1/4, up 13 cents,

Dec 24 MGEX Wheat  is at $5.86, up 13 3/4 cents,

Mar 25 MGEX Wheat  is at $6.04, up 12 3/4 cents,