Double Digit Losses in Wheats

Front month wheat prices faded on Friday going into the weekend at levels not seen since Feb. Chicago futures closed with 4% to 5.8% losses. KC futures fell 3.8% to 4.7% in the front months. Spring wheat prices were down 34 3/4 to 41 1/2 cents on the day. omestic wheat markets are trading +30 cents in the red across both markets. For SRW that has the board 4.28% to 5% in the red. HRW futures are down 3.9% lower to 4.8% lower. MPLS wheats are down 2.8% to 3.75%. 

CFTC reported CBT SRW wheat spec traders as 6,816 contracts net short as of 7/19. That was a net 372 contracts stronger net short as the new sellers offset the new spec buyers on a 7.1k contract increased OI. For KC wheat, CFTC had the funds at 11,868 contracts net long. That was down 4.5k wk/wk via net new selling. MPLS spec traders were down to just 982 contracts net long as of 7/19’s settle. That was via 5.3k longs vs 4.4k spec shorts. 

The IGC lifted their wheat outlook by 1 MMT from June to 770 MMT. Last year’s production was 781. Carryout was also down by 1 MMT to 272, and now 10 MMT below 21/22. 

Argentina’s Buenos Aires Grains Exchange reported 22/23 wheat planting reached 97% complete on 6.1m HA. 

Rumors on the wire suggest seeing a signed resolution involving the U.N., Ukraine, Turkey, and Russia to allow Black Sea grain and food exports by the end of the week. Details remain unclear, though reports are that the talks are going smoothly. 

Sep 22 CBOT Wheat  closed at $7.59, down 47 1/4 cents,

Dec 22 CBOT Wheat  closed at $7.77 1/2, down 44 1/4 cents,

Cash SRW Wheat  was $6.99 1/1, down 47 1/4 cents,

Sep 22 KCBT Wheat  closed at $8.20 1/4, down 41 cents,

Cash HRW Wheat  was $7.68 1/4, down 41 cents,

Sep 22 MGEX Wheat  closed at $8.71, down 41 1/2 cents,