After the long weekend, wheat gapped lower on the opening and extended losses throughout the night. Selling was tied to reports that the US and Iran are close to signing a peace deal. Improving weather forecasts added pressure as rain is in the forecasts for the Southern Plains while warm dry forecasts are in store for the Northern Plains. Money is flowing out of the grains and into the stock market added pressure as all three of the stock indexes traded to new all-time contract highs. Mpls was able to stage a recovery once the day session started with most of the support coming from reports of poor planting conditions in Canada. Cold wet conditions continue and will likely result in lower acreage and production.
In Wednesday’s session wheat opened steady to higher with early support coming from Tuesday’s friendly Crop Progress report, which showed another lower crop rating for winter wheat. Last week the HRW wheat crop was unchanged, the SRW wheat crop improved slightly, but the WW wheat crop declined. Selling took charge of the wheat complex once the day session started due to slow demand from reports that the US wheat is not export competitive. In world news, Sovecon increased Russia’s wheat production estimate to 90.3 MMT vs 89.7 MMT previously. India also increased their wheat production estimate to 120.7 MMT vs 118.0 MMT last year. And the EU lowered their wheat production estimate to 126.9 MMT vs 127.3 MMT previously.
On Thursday wheat opened with each of the wheat exchanges going in their own direction (Mpls steady, Chicago lower, KC higher). But by early morning all three changed direction as Mpls remained steady but Chicago was higher and KC lower. Weather forecasts calling for above normal temps and little rain over the next 14 days added pressure to Chicago and Mpls as that forecast will help warm up soil and dry out the wet regions. KC needs rain so this forecast was friendly. Technical buying helped trim session losses.
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, July Mpls MIAX was at $6.6375 down 15.75 cents while Sept was at $6.885 down 21.75 cents, July Chicago was at $6.105 down 35.75 cents, July KC was at $6.4975 down 32.25 cents.
For the month, July Mpls MIAX was down 42.0 cents while Sept was down 34.0 cents, July Chicago was down 26.25 cents, July KC was down 43.75 cents.
Wheat Weekly Comments May 29
Wheat Weekly Comments May 29
After the long weekend, wheat gapped lower on the opening and extended losses throughout the night. Selling was tied to reports that the US and Iran are close to signing a peace deal. Improving weather forecasts added pressure as rain is in the forecasts for the Southern Plains while warm dry forecasts are in store for the Northern Plains. Money is flowing out of the grains and into the stock market added pressure as all three of the stock indexes traded to new all-time contract highs. Mpls was able to stage a recovery once the day session started with most of the support coming from reports of poor planting conditions in Canada. Cold wet conditions continue and will likely result in lower acreage and production.
In Wednesday’s session wheat opened steady to higher with early support coming from Tuesday’s friendly Crop Progress report, which showed another lower crop rating for winter wheat. Last week the HRW wheat crop was unchanged, the SRW wheat crop improved slightly, but the WW wheat crop declined. Selling took charge of the wheat complex once the day session started due to slow demand from reports that the US wheat is not export competitive. In world news, Sovecon increased Russia’s wheat production estimate to 90.3 MMT vs 89.7 MMT previously. India also increased their wheat production estimate to 120.7 MMT vs 118.0 MMT last year. And the EU lowered their wheat production estimate to 126.9 MMT vs 127.3 MMT previously.
On Thursday wheat opened with each of the wheat exchanges going in their own direction (Mpls steady, Chicago lower, KC higher). But by early morning all three changed direction as Mpls remained steady but Chicago was higher and KC lower. Weather forecasts calling for above normal temps and little rain over the next 14 days added pressure to Chicago and Mpls as that forecast will help warm up soil and dry out the wet regions. KC needs rain so this forecast was friendly. Technical buying helped trim session losses.
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, July Mpls MIAX was at $6.6375 down 15.75 cents while Sept was at $6.885 down 21.75 cents, July Chicago was at $6.105 down 35.75 cents, July KC was at $6.4975 down 32.25 cents.
For the month, July Mpls MIAX was down 42.0 cents while Sept was down 34.0 cents, July Chicago was down 26.25 cents, July KC was down 43.75 cents.