Wheats Drop into Weekend

The front month wheat futures market pulled back on Friday and closed with 3-4% losses. Chicago wheat futures went home 38 3/4 to 44 cents in the red. KC wheats ended Friday 40 1/2 to 43 1/2 cents lower. From Friday to Friday the July contracts were 36 3/4 cents lower in SRW and 57 1/2 cents lower in HRW. The KC/CBT premium was still 70 3/4 cents/bu at the settle. That is down from a 90 1/4 cent premium at the highs in mid-May. Spring wheat futures settled with 33 1/2 to 39 1/2 cent losses on Friday. Sep MPLS wheat was 51 1/4 cents lower wk/wk. As a reminder the market is closed on Monday in recognition of Juneteenth. July options expire next Friday. 

CFTC’s weekly Commitment of Traders report showed the funds were closing CBT SRW longs through the week that ended 6/14. That left the group 5,736 contracts less net long to just 6,939 – their weakest net long since being net short on March 1st. In KC wheat, the spec traders were 1,112 contracts less net long to 36,386 contracts. Their long liquidation took their net long position to the lowest since mid-Feb (pre-invasion). In spring wheat, CFTC reported managed money as 14.2k longs vs 965 shorts. That compared to 14.8k longs and 911 shorts the week prior. 

Day 4 from the KS Wheat Harvest report had notes for 30-40 bpa fields in Meade county. Some earlier planted fields were 10-15 bpa. Protein reports ranged 11 to 15.5%. In Dodge county, yield reports were all over the place, though 35 is the most consistent estimate. Proteins were marked near 12-13%. 

The FranceAgriMer sees wheat conditions at 65% good/ex, down 1% point wk/wk. 

Jul 22 CBOT Wheat  closed at $10.34 1/4, down 44 cents,

Cash SRW Wheat  was $9.76 3/4, down 42 7/8 cents,

Jul 22 KCBT Wheat  closed at $11.05, down 43 1/2 cents,

Cash HRW Wheat  was $10.58 5/8, down 42 3/8 cents,

Jul 22 MGEX Wheat  closed at $11.69 1/2, down 39 1/2 cents,

Sep 22 MGEX Wheat  closed at $11.70, down 39 1/2 cents,