Third Consecutive Double Digit Loss for Wheat

Wheats fell double digits for the third session in a row, after the July contracts printed new highs on Tuesday. Chicago wheat closed 26 1/4 to 31 3/4 cents lower on the day, with July ending the session 8 3/4 cents under last Friday’s settle. KC wheat markets were 38 1/4 to 42 1/2 cents weaker on the day, with July closing 29 1/4 cents lower Friday to Friday. MPLS wheat prices were down by 44 1/4 to 51 1/2 cents on the day.

CFTC data showed funds’ activity in CBT wheat was mostly adding new longs through the week that ended 5/17. That expanded their net long by 11k contracts to 26,586 contracts. In KC wheat, the spec funds were 3,877 contracts more net long to 46,790. Activity through the week was a little more short covering than net new buying. For Minneapolis wheat, managed money traders were reported 18,175 contracts net long, an 82 contract reduction on lighter OI wk/wk.  

Planalytics estimates the US winter wheat yield at 48.7 bpa, from their initial 48.8 bpa estimate. 

The International Grains Council forecasted 22/23 wheat output as 769 MMT, compared to their earlier 780 MMT estimate. Indian production was trimmed to 105 MMT from 111+. 

Canadian wheat planting in Saskatchewan was 33% complete as of 5/16, trailing their 53% average pace due to excessive spring rainfall. India reduced their wheat crop outlook from 111.3 MMT earlier to 106.41 MMT. That would now be a reduction yr/yr from 109.6 MMT last season. 

Ukrainian export data showed 643k MT of grains were shipped MTD in May, down from 1.8 MMT during May 2021. Of that, just 16k MT were wheat. 

Jul 22 CBOT Wheat  closed at $11.68 3/4, down 31 3/4 cents,

Cash SRW Wheat  was $11.09, down 31 3/4 cents,

Jul 22 KCBT Wheat  closed at $12.52 3/4, down 42 1/2 cents,

Cash HRW Wheat  was $11.99 1/8, down 42 3/8 cents,

Jul 22 MGEX Wheat  closed at $12.79, down 51 1/2 cents,

Sep 22 MGEX Wheat  closed at $12.78 3/4, down 50 1/4 cents,