Wheat Popping on Monday as Tensions Ease

Wheat is posting Monday strength across the three exchanges so far at midday. Chicago SRW futures are up 6 to 8 cents in the nearbys. KC HRW futures are 7 to 8 cents higher in the front months. MPLS spring wheat is 4 to 5 cents in the green on the session.

Export Inspections data showed wheat exports totaling 251,637 MT in the week of 1/30. That was a drop of 47.86% from last week and 14.52% below the same week last year. Shipments were fairly spread out, with 55,000 MT headed to the Philippines, 40,000 MT on its way to South Korea, and 38.303 MT to Egypt. Marketing year shipments are now at 14.03 MMT (515.5 mbu), which is a 21.12% increase over the same time last year. 

Earlier this morning, following a meeting between President Trump and Mexico’s President, the tariffs on Mexico were pushed back month from the expected Tuesday start as Mexico is planning to send 10,000 troops to the border to slow the trafficking of drugs. There has been no official push back on the date for the Canadian tariffs. 

Commitment of Traders data indicated spec funds adding a total of 18,990 contracts added to their net short position in CBT wheat as of January 28, to 110,782 contracts. In KC wheat, they added 7,255 contracts to their net short at 42,386 contracts by Tuesday. 

Mar 25 CBOT Wheat  is at $5.67 1/2, up 8 cents,

May 25 CBOT Wheat  is at $5.79, up 6 3/4 cents,

Mar 25 KCBT Wheat  is at $5.87, up 7 3/4 cents,

May 25 KCBT Wheat  is at $5.96 1/4, up 7 1/4 cents,

Mar 25 MGEX Wheat  is at $6.20, up 4 1/2 cents,

May 25 MGEX Wheat  is at $6.27 1/2, up 4 1/2 cents,