Wheat Trade Ends Friday Red
Futures went into the weekend on a red Friday. Chicago futures ended 6 to 11 cents lower. That flipped September to a net 6 cent loss for the week’s move. KC prices were down 7 to 13 1/4 cents on Friday. Sep HRW closed out the week with a 3 1/4 cent gain Fri/Fri. Spring wheat ended the day down by 2 to 9 cents across the front months. September futures ended the week at a net 7 1/4 cent loss. USDA made no change to the $7.50 cash price.
The weekly Commitment of Traders report showed Chicago wheat specs were 55,395 contracts net short as of 8/8. That was a 5k contract stronger net short wk/wk via net new selling. Managed money was reported at a 5,257 contract net long – an 8-wk low after net new selling of 11.8k contracts. The spec funds were also selling in spring wheat, and reduced their net long by 3k to 4.5k contracts.
USDA’s monthly S&D outlook upped the acreage by 200k to both planted and harvested, but trimmed back the yield. On net production lost 5 mbu to 1.734 bbu. By class, USDA’s NASS had HRW output 7.1 mbu higher and over the trade average guess, SRW 17.8 mbu higher and over the high end of estimates, winter white 5.1 mbu lower near the low end of estimates, and spring wheat 29 mbu lower and near the low end of estimates. From the WASDE the usage was 28 mbu less mainly via exports to 700 mbu. Stocks were reported at 615 mbu, compared to the 6 mbu increase expected.
The WAOB cut Canadian wheat output by 2 MMT, and cut the EU by 3 MMT, however Ukraine was raised by 3.5 MMT. Global trade was reduced, for a net 2/10ths lower U.S. market share of 9%. Global wheat carryout was reported at 265.6 MMT, 920k MT tighter than in July and near the trade average guess.
Sep 23 CBOT Wheat closed at $6.26 3/4, down 11 cents,
Dec 23 CBOT Wheat closed at $6.53 3/4, down 10 cents,
Cash SRW Wheat was $5.59 1/4, down 11 1/8 cents,
Sep 23 KCBT Wheat closed at $7.55 3/4, down 11 1/4 cents,
Cash HRW Wheat was $6.94 3/4, down 11 1/2 cents,
Sep 23 MGEX Wheat closed at $8.15, down 2 cents,
Source Link: https://www.barchart.com/story/news/19325907/wheat-trade-ends-friday-red
