Wheat Fading Lower on Monday

The wheat complex are facing midday weakness on Monday. Chicago SRW contracts are 7 to 8 cents lower at midday. KC HRW futures are falling 1 to 4 cents in most contracts on Monday. MPLS spring wheat us down 2 cents in September, with July down 12 ¼ cents. 

The weekly Export Inspections report showed wheat shipments of just 358,253 MT (13.16 mbu) in the week of 6/25. That was down 9.56% from the week prior and 24,83% below the same week last year. South Korea was the largest destination of 79,069 MT, with 78,042 MT shipped to Mexico and 66,000 MT to the Philippines. Shipments for the marketing year are now at 1.333 MMT (48.98 mbu) of wheat, which is 0.86% above the same period last year. 

CFTC data showed managed money adding 1,675 contracts to their net short position in the week ending on June 23, taking it to 71,206 contracts. In KC wheat futures and options, specs were flipping back to a net short of 1,285 contracts, a move of 8,905 contracts. 

All wheat acres are expected to be reported at 43.8 million acres in the annual June Acreage report on Tuesday. Spring wheat acres are seen at 9.5 million acres, with durum at 2 million acres in a Bloomberg survey of traders.

A South Korean mill importer has tendered for 100,000 MT of wheat from the US and Australia, with 50,000 MT US specific and a deadline of Tuesday for offers.

Argus estimates the Russian wheat crop at 91.2 MMT, an increase of 2.5 MMT from the previous estimate in April.

Jul 26 CBOT Wheat  is at $5.70 3/4, down 7 1/2 cents,

Sep 26 CBOT Wheat  is at $5.81 3/4, down 8 cents,

Jul 26 KCBT Wheat  is at $6.07 1/2, down 3 1/2 cents,

Sep 26 KCBT Wheat  is at $6.18 1/4, down 1 1/4 cents,

Jul 26 MIAX Wheat  is at $5.63 1/4, down 12 1/4 cents,

Sep 26 MIAX Wheat  is at $6.03 1/4, down 2 cents,