The wheat market is extending the weakness into Tuesday’s midday, with double digit losses across the winter wheat contracts. Chicago SRW wheat is down 15 to 16 cents. KC HRW contracts are 13 to 14 cents in the red. MPLS spring wheat is down 5 to 6 cents.
After the Monday close the weekly crop progress update from USDA showed winter wheat at 96% headed as of June 15th. Harvest has been slow, progressing 9 points to 19% complete as of Sunday, behind the 28% average. The forecast does show an opening over the next week to help dry things out. NASS pegged condition ratings at 49% good/excellent, down 3% from last week. That equates to a 4 point drop on the Brugler500 index, to 330 points. Just AR (+8), OH (+1), OR (+3) and SD (+1) were improving. Ratings in CO fell 31 points, with NC and OK down 15, and KS down 9 points.
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The spring wheat crop was tallied at 17% headed by Sunday, lagging the 18% average pace. Condition ratings for the crop were down 3 percent to 54% good to excellent. That was an 11 point drop on the Brugler500 index to 341. All of the 6 states were reported with lower ratings, as MN fell 30, SD down 16, and WA down 6.
A delayed Commitment of Traders report from CFTC showed Chicago wheat spec traders decreasing their large net short position by 12,658 contracts to a net short of 81,353 contracts as of last Tuesday. By June 17th, Kansas City wheat speculators had covered 12,813 contracts of their large net short position to 62,151 contracts.
The EU Commission has soft wheat exports at 19.93 MMT from July 1 to June 22, nearly the full marketing year, well below the 30.53 MMT from the same period last year.
Jul 25 CBOT Wheat is at $5.37, down 15 3/4 cents,
Sep 25 CBOT Wheat is at $5.53 1/2, down 16 cents,
Jul 25 KCBT Wheat is at $5.36 3/4, down 13 1/4 cents,
Sep 25 KCBT Wheat is at $5.51, down 14 cents,
Jul 25 MGEX Wheat is at $6.21 3/4, down 5 cents,
Sep 25 MGEX Wheat is at $6.39 3/4, down 5 1/2 cents,
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
