Wheat Extending Slide on Monday
The wheat complex faced losses on Monday, with Chicago contracts down 6-10 cents, nearing early spring lows. Kansas City futures dropped 3-4 cents, and MPLS spring wheat fell 4-7 cents, extending contract lows. USDA’s Export Inspections reported 342,692 MT of wheat shipped for the week ending June 20, down 16.43% from the previous week. Argus lowered the Russian wheat crop estimate to 79.5 MMT. India imposed wheat stock limits to stabilize prices. Wheat prices for July and September showed declines across CBOT, KCBT, and MGEX.
The wheat complex is trading the Monday session with losses, as bears continue to take control. Chicago contracts are leading the way, with losses of 6 to 10 cents so far, as they approach the early spring lows. Kansas City futures are trading 3 to 4 cents lower across the front months, trying to ease some of the weakness. MPLS spring wheat contracts are own 4 to 7 cents to extend the life of contract lows.
USDA’s Export Inspections report showed a total of 342,692 MT (12.6 mbu) of wheat shipped during the week that ended on June 20. That was a 16.43% decline from the previous week, but still 67% above the same week last year. Of that total 96,209 MT was headed to Mexico, with 79,123 on its way to Japan and 65,000 MT to Brazil. In the first 3 weeks of the new marketing year, export shipments have tallied 1.05 MMT, 38.3% above the same few weeks last year.
Argus reduced their projection for the Russian wheat crop from their previous release to 79.5 MMT, which is among the lowest of the private estimates that have been released. India began imposing limits on wheat stocks among retailers and processors to keep prices in check and prevent hoarding. They have contemplated removing or reducing the 40% import tax on wheat, but have taken no action so far.
Jul 24 CBOT Wheat is at $5.51 1/2, down 10 cents,
Sep 24 CBOT Wheat is at $5.69 3/4, down 6 cents,
Jul 24 KCBT Wheat is at $5.77 1/2, down 3 3/4 cents,
Sep 24 KCBT Wheat is at $5.83 3/4, down 3 1/4 cents,
Jul 24 MGEX Wheat is at $6.04 3/4, down 6 3/4 cents,
Sep 24 MGEX Wheat is at $6.12 3/4, down 4 1/2 cents,
Source Link : https://www.barchart.com/story/news/27001879/wheat-extending-slide-on-monday
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