Wheat opened the week with each of the wheat exchanges going in their own direction (MW lower, Chicago higher, KC steady). By the end of the night session all three wheat exchanges were higher, and the winter wheat exchanges extended session gains into the day session, spring wheat did not. Early support came from weather forecasts calling for cold wintery weather for the Northern Plains and for rain on the Southern Plains. Except the forecasts show the rain missing the driest regions of KS. Expectations that spring wheat planting progress will be delayed and winter wheat ratings will decline helped added support. Reports that peace talks are on hold with Iran since no one knows who is in charge in the country added support, this means the Strait will remain closed for some time, which is friendly commodities.
Tuesday’s session had wheat opening with small losses in all three exchanges but quickly found support and rallied to post solid gains by the end of the night. Gains were extended once the day session started with support coming from weather forecast calling for dry conditions in KS. Light support was due to the wet conditions in the Northern Plains. Monday afternoon’s Crop Progress showed slow spring wheat planting progress as progress was estimated to be 5% behind expectations and this week won’t be a catch-up week. Technically Mpls wheat traded to another round of new contract highs in the July and deferred months while KC is trading at three-year highs. Hedger’s, we hit our target to advance spring wheat sales. Producers should lock in the Sept futures at $7.15 or better to advance wheat sales to 30%.
Buying continued to help give wheat support midweek, but wheat isn’t showing the same enthusiasm as it was earlier in the week. Wheat opened steady in the KC market but lower in the other two exchanges. By the end of the night session, all of the wheat exchanges were trading in the black. Early support came from the updated weather forecasts that has pulled rain out of the forecast for the Southern Plains, especially the southwestern corner of KS and OK. Weather forecast calling for cold conditions in the Northern Plains added support as it will result in a slowdown in planting progress. Light support also came from production estimates from two Ag Attache. US’s Ag Attache for Canada is estimating this year’s wheat production at 36.2 MMT vs 40.0 MMT last year. Australia’s US Ag Attache is estimating production at 29.0 MMT vs 36.0 MMT last year. But wheat started to look tired around midsession and ended up giving in to the bears. All three exchanges faded their gains and only Mpls cand the July KC closed with small gains.
Selling dominated the wheat exchanges to wrap up the week ending Thursday. Pressure was due to profit taking and end of month position squaring. Reports of some rain in eastern CO added to the pressure. Weather forecasts have more rain in the forecast for CO with even some chances for western KS. Long term forecasts are still friendly with NOAA’s temp outlook showing temps remaining below normal for the next 14 days. No technical damage was done.
Hedgers target $7.85 to advance spring wheat sales.
July MIAX MW support is $6.75, Sept MIAX MW support is at $6.90, July Chicago wheat support is $6.25, July KC support is $6.60.
For the week, May Mpls MIAX was at $7.045 up 28.5 cents, May Chicago was at $6.245 up 16.25 cents, May KC was at $6.825 up 23.5 cents.
For the month, May Mpls MIAX was up 36.25 cents, May Chicago was up 7.5 cents, May KC was up 42.5 cents.
Wheat Weekly Comments May 1
Wheat Weekly Comments May 1
Wheat opened the week with each of the wheat exchanges going in their own direction (MW lower, Chicago higher, KC steady). By the end of the night session all three wheat exchanges were higher, and the winter wheat exchanges extended session gains into the day session, spring wheat did not. Early support came from weather forecasts calling for cold wintery weather for the Northern Plains and for rain on the Southern Plains. Except the forecasts show the rain missing the driest regions of KS. Expectations that spring wheat planting progress will be delayed and winter wheat ratings will decline helped added support. Reports that peace talks are on hold with Iran since no one knows who is in charge in the country added support, this means the Strait will remain closed for some time, which is friendly commodities.
Tuesday’s session had wheat opening with small losses in all three exchanges but quickly found support and rallied to post solid gains by the end of the night. Gains were extended once the day session started with support coming from weather forecast calling for dry conditions in KS. Light support was due to the wet conditions in the Northern Plains. Monday afternoon’s Crop Progress showed slow spring wheat planting progress as progress was estimated to be 5% behind expectations and this week won’t be a catch-up week. Technically Mpls wheat traded to another round of new contract highs in the July and deferred months while KC is trading at three-year highs. Hedger’s, we hit our target to advance spring wheat sales. Producers should lock in the Sept futures at $7.15 or better to advance wheat sales to 30%.
Buying continued to help give wheat support midweek, but wheat isn’t showing the same enthusiasm as it was earlier in the week. Wheat opened steady in the KC market but lower in the other two exchanges. By the end of the night session, all of the wheat exchanges were trading in the black. Early support came from the updated weather forecasts that has pulled rain out of the forecast for the Southern Plains, especially the southwestern corner of KS and OK. Weather forecast calling for cold conditions in the Northern Plains added support as it will result in a slowdown in planting progress. Light support also came from production estimates from two Ag Attache. US’s Ag Attache for Canada is estimating this year’s wheat production at 36.2 MMT vs 40.0 MMT last year. Australia’s US Ag Attache is estimating production at 29.0 MMT vs 36.0 MMT last year. But wheat started to look tired around midsession and ended up giving in to the bears. All three exchanges faded their gains and only Mpls cand the July KC closed with small gains.
Selling dominated the wheat exchanges to wrap up the week ending Thursday. Pressure was due to profit taking and end of month position squaring. Reports of some rain in eastern CO added to the pressure. Weather forecasts have more rain in the forecast for CO with even some chances for western KS. Long term forecasts are still friendly with NOAA’s temp outlook showing temps remaining below normal for the next 14 days. No technical damage was done.
Hedgers target $7.85 to advance spring wheat sales.
July MIAX MW support is $6.75, Sept MIAX MW support is at $6.90, July Chicago wheat support is $6.25, July KC support is $6.60.
For the week, May Mpls MIAX was at $7.045 up 28.5 cents, May Chicago was at $6.245 up 16.25 cents, May KC was at $6.825 up 23.5 cents.
For the month, May Mpls MIAX was up 36.25 cents, May Chicago was up 7.5 cents, May KC was up 42.5 cents.