Wheat Retreat Continued on Friday
Wheat futures continued their descent, with Chicago July futures marking their eighth consecutive session in the red, dropping by 11 ¼ to 12 ½ cents. KC HRW and MPLS spring wheat followed suit, declining by 12 ¼ to 13 cents and 12 ¼ to 12 ¾ cents respectively. Turkey’s decision to halt wheat imports until October aims to safeguard domestic prices against cheap Russian imports, amidst Russia’s crop emergency declaration due to frost damage. Meanwhile, spec funds increased their net short position in CBT wheat futures and options, adding a net 6,253 contracts, bringing their total to 31,684 contracts.
Wheat futures were down by a dime of more per bushel in all three US futures markets. There is a well worn axiom that says “Wheat takes no prisoners”. When it gets on a trending move there are often few rest stops along the way. In this case the move is back down the mountain. Chicago July futures have closed lower for 8 consecutive sessions. Chicago SRW was down 11 ¼ to 12 ½ cents today. KC HRW, which had closed higher on Thursday, was down 12 ¼ to 13 cents. MPLS spring wheat prices declined by 12 ¼ to 12 ¾ cents.
In world wheat news, Turkey is halting wheat imports until October to protect domestic producer prices at and after harvest. Cheap Russian imports have been a problem. Russia declared a crop emergency in 10 administrative regions due to the frost damage in May, a move which had been widely anticipated. Deputy Ag Minister Razin indicated via TASS that 800,000 HA had already been replanted, and re-assured buyers that obligations would be fulfilled.
For Wednesday’s USDA Crop Production report, the average trade estimate for All Wheat in a Reuters survey was 1.88 billion bushels. That would be up from 1.858 billion in the USDA May report. According to three different surveys, a number of analysts are expecting production increases for all three winter wheat classes.
This afternoon’s Commitment of Traders report showed the spec funds were increasing their net short position in CBT wheat futures and options during the week ending June 4. They added a net 6,253 contracts and were still net short 31,684 on that date.
Source Link: https://www.barchart.com/story/news/26701264/wheat-retreat-continued-on-friday
