To start the week wheat opened the session higher but turned to trade mixed by the end of the night session. Mpls were higher, KC steady, and Chicago lower. Heavy selling gripped wheat once the day session started with the winter wheat seeing the brunt of the selling early in the session, but Mpls caught up to trade with heavy losses in the front month July. By the end of the night July Mpls had seen a 44.75 cent trading range. The rolling of July contract to deferred months pressured July. Additional pressure was due to improving weather conditions in the US. The extreme heat in the EU has had no bearing on how wheat traded. Position squaring ahead of Tuesday’s reports added pressure.
Wheat opened Tuesday’s session lower but found support early in the overnight session. Early selling was tied to spill over pressure from Monday’s poor performance. Losses were trimmed during the overnight session and wheat managed to end the night session with small gains due to last-minute position squaring ahead of today’s USDA reports. Light support came from reports that Nigeria bought 100 TMT of US HRS wheat. USDA’s reports were bullish wheat as stocks came in below expectations and acres were sharply lower than expected. Stocks were estimated at 920 MB, 14 MB below expectations but 65 MB above last year.
All wheat acreage was estimated at 42.74 million, 1.118 million less than expected and 2.588 million less than last year. Winter wheat acreage is estimated at 31.52 million, 902,000 less than expected and 1.633 million less than last year. If realized the winter wheat harvested for grain estimate will be a record low.
Other spring wheat acreage is estimated at 9.39 million, down 25,000 from expectations and 600,000 less than last year. Durum acreage is estimated at 1.83 million, down 146,000 from expectations and 355,000 below last year. The other spring wheat planted acreage estimate is the lowest since 1970.
Wheat opened Wednesday’s session lower in all three exchanges but managed to shake off the early selling pressure and pushed to trade with gains by the end of the night. Light support spilled over from Tuesday’s friendly USDA reports as both the acreage and stocks report held friendly news for wheat. Weather forecast calling for hot humid conditions for the Northern Plains added support was it is starting to raise disease concerns. Technical buying was also evident as all three wheat exchanges were oversold and in need of a correction. Position squaring and profit taking ahead of the long weekend was also seen.
Sept MIAX MW support is at $6.00, Sept Chicago wheat support is $5.71, Sept KC support is $6.00.
For the week, July Mpls MIAX was at $5.90 up 14.5 cents while Sept was at $6.1875 up 13.5 cents, July Chicago was at $5.905 up 12.25 cents, July KC was at $6.27 up 16.0 cents.
For the month, July Mpls MIAX was down 87.25 cents while Sept was down 82.0 cents, July Chicago was down 29.75 cents, July KC was down 38.75 cents.
Wheat Weekly Comments July 2
Wheat Weekly Comments July 2
To start the week wheat opened the session higher but turned to trade mixed by the end of the night session. Mpls were higher, KC steady, and Chicago lower. Heavy selling gripped wheat once the day session started with the winter wheat seeing the brunt of the selling early in the session, but Mpls caught up to trade with heavy losses in the front month July. By the end of the night July Mpls had seen a 44.75 cent trading range. The rolling of July contract to deferred months pressured July. Additional pressure was due to improving weather conditions in the US. The extreme heat in the EU has had no bearing on how wheat traded. Position squaring ahead of Tuesday’s reports added pressure.
Wheat opened Tuesday’s session lower but found support early in the overnight session. Early selling was tied to spill over pressure from Monday’s poor performance. Losses were trimmed during the overnight session and wheat managed to end the night session with small gains due to last-minute position squaring ahead of today’s USDA reports. Light support came from reports that Nigeria bought 100 TMT of US HRS wheat. USDA’s reports were bullish wheat as stocks came in below expectations and acres were sharply lower than expected. Stocks were estimated at 920 MB, 14 MB below expectations but 65 MB above last year.
All wheat acreage was estimated at 42.74 million, 1.118 million less than expected and 2.588 million less than last year. Winter wheat acreage is estimated at 31.52 million, 902,000 less than expected and 1.633 million less than last year. If realized the winter wheat harvested for grain estimate will be a record low.
Other spring wheat acreage is estimated at 9.39 million, down 25,000 from expectations and 600,000 less than last year. Durum acreage is estimated at 1.83 million, down 146,000 from expectations and 355,000 below last year. The other spring wheat planted acreage estimate is the lowest since 1970.
Wheat opened Wednesday’s session lower in all three exchanges but managed to shake off the early selling pressure and pushed to trade with gains by the end of the night. Light support spilled over from Tuesday’s friendly USDA reports as both the acreage and stocks report held friendly news for wheat. Weather forecast calling for hot humid conditions for the Northern Plains added support was it is starting to raise disease concerns. Technical buying was also evident as all three wheat exchanges were oversold and in need of a correction. Position squaring and profit taking ahead of the long weekend was also seen.
Sept MIAX MW support is at $6.00, Sept Chicago wheat support is $5.71, Sept KC support is $6.00.
For the week, July Mpls MIAX was at $5.90 up 14.5 cents while Sept was at $6.1875 up 13.5 cents, July Chicago was at $5.905 up 12.25 cents, July KC was at $6.27 up 16.0 cents.
For the month, July Mpls MIAX was down 87.25 cents while Sept was down 82.0 cents, July Chicago was down 29.75 cents, July KC was down 38.75 cents.