Wheat Bulls Charging Higher on Monday Morning Trade

The wheat complex is showing strength to begin a new week of trade. Wheat pulled back on Friday across the three exchanges. Chicago SRW futures posted losses of 2 to 3 cents, with May down 4 ½ cents last week. KC HRW futures were fractionally to a penny lower in the nearbys, as May was down 8 ¼ cents from last Friday. The CME showed 19 delivery notices for March KC wheat, with 10 deliveries for March CBT. MPLS spring wheat was down 1 to 3 cents in the front months, with May losing a nickel on the week.  

Friday afternoon’s Commitment of Traders report showed managed money’s CBT wheat net short at a total of 82,399, an increase of 14,785 contracts from the week prior. In KC wheat, they added back another 17,947 contracts to their net short as of Tuesday to 39,282 contracts. 

All wheat export commitments have totaled 20.484 MMT as of February 27, 11% above the same period last year. That is 89% of USDA’s wheat export projection and lagging the 97% average pace for export sales. 

The monthly WASDE report from USDA will be released on Tuesday, with traders looking for no major changes to the US ending stocks projection. The average trade estimate is 797 mbu, a 3 mbu increase from last month. 

Mar 25 CBOT Wheat  closed at $5.33 3/4, up 3 cents, currently unch

May 25 CBOT Wheat  closed at $5.51 1/4, down 2 3/4 cents, currently up 9 3/4 cents

Mar 25 KCBT Wheat  closed at $5.51 1/4, down 1/4 cent, currently unch

May 25 KCBT Wheat  closed at $5.64 3/4, down 1 cent, currently up 9 cents

Mar 25 MGEX Wheat  closed at $5.78, up 5 1/2 cents, currently unch

May 25 MGEX Wheat  closed at $5.92 3/4, down 1 1/4 cents, currently up 5 cents