Wheat Falls By Double Digits on Monday
Wheat futures fell across all major markets on Monday. Chicago, Kansas City, and Minneapolis contracts dropped 11–13 cents. Despite slight improvements in U.S. crop ratings, harvest progress remains slow. Export inspections were down sharply, and global production estimates for Ukraine and Russia were slightly lowered. Rain in key U.S. regions may further delay harvesting activities.
The wheat complex was weaker from the Monday morning open to the close, with losses across the three markets. Chicago SRW futures were back down 11 to 13 cents on Monday. Kansas City HRW contracts were also 11 to 13 cents lower on the day. Minneapolis spring wheat futures wre 11 to 13 cents in the red.
The US winter wheat crop was tallied at 88% headed by Sunday, with the average at 86%. Harvest is lagging with just 4% complete, behind 7% via the 5-year average. Ratings were up 2% to 54% gd/ex, as the Brugler500 was up 5 points to 341. Rains in much of southern KS, OK, and TX over the weekend may put a slowdown in much early harvest activity. The next 7 days shows heavy totals in TX and OK stretching over the parts of SRW area.
Crop Progress data had the spring wheat crop at 82% emerged, and 1% ahead of normal. Conditions improved another 3% to 53% gd/ex as the Brugler500 was up 7 points to 347.
Export Inspections data showed wheat shipments at 290,957 MT (10.69 mbu) during the week of June 5. That was down 47.52% from the previous week and 17.55% below the same week last year. Of that total, 168,084 MT was for the new marketing year. Mexico was the largest destination of 87,242 MT, with 57,521 MT headed to Japan and another 35,324 MT to Japan.
Ukraine wheat production was estimated at 21.7 MMT according to APK-Inform, down from the previous 21.8 MMT estimate. SovEcon estimates the Russian wheat crop at 82.8 MMT, down 1.8 MMT from the previous estimate.
Jul 25 CBOT Wheat closed at $5.42, down 12 3/4 cents,
Sep 25 CBOT Wheat closed at $5.57, down 11 3/4 cents,
Jul 25 KCBT Wheat closed at $5.37 1/2, down 11 3/4 cents,
Sep 25 KCBT Wheat closed at $5.50 1/4, down 12 1/4 cents,
Jul 25 MGEX Wheat closed at $6.22 1/2, down 12 3/4 cents,
Sep 25 MGEX Wheat closed at $6.32 1/2, down 11 1/2 cents.
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Source : BarChart
