Wheat Firms into the Close to Settle the Week with Gains
The wheat market ended on a positive note in Friday’s trade, with Chicago SRW futures posting slight gains. Kansas City HRW contracts saw strength, closing up 2 to 3 cents, while MPLS spring wheat rose slightly. The Commitment of Traders report revealed speculators increasing their short positions in Chicago wheat, while trimming them in KC. USDA export sales for 2024/25 wheat commitments are 14% higher than last year, but sales are slightly behind the 5-year average pace. Weather forecasts indicate limited rains in the Southern Plains, with heavier rainfall in South/Central Texas.
The wheat complex was choppy on the Friday trade, as bulls came out on top to end the session. Chicago SRW futures closed the session with gains of a penny in the nearbys and May up jist 1 ¼ cent on the week. Kansas City HRW contracts posted front month strength, with contract 2 to 3 cents higher at the close, helping to hold the weekly move to 2 ¾ cents higher. MPLS spring wheat was up just fractionally at the close, with May rising 3 ¼ cents on the week.
A look to the next week in the Southern Plains sees limited rains, with heavier totals in South/Central Texas. The panhandle of TX up through western KS is dry, with very little precip in the eastern portions.
The Friday afternoon Commitment of Traders data from CFTC showed speculators in Chicago wheat adding 3,256 contracts to their net short as of Tuesday to 80,668 contracts. In KC, they were trimming that large net short by 2,059 contracts to 46,663 contracts by March 18.
USDA Export Sales data shows commitments for US wheat at 21.026 MMT for the 2024/25 MY. That is still 14% above the same week last year. That puts the current sales pace at 93% of the USDA export projection, lagging behind the 99% average pace from the last 5 years.
France AgriMer showed French soft wheat ratings at 74% gd/ex, which was steady with the previous week’s ratings.
May 25 CBOT Wheat closed at $5.58 1/4, up 1 cent,
Jul 25 CBOT Wheat closed at $5.74 1/2, up 1 cent,
May 25 KCBT Wheat closed at $5.88 3/4, up 2 1/4 cents,
Jul 25 KCBT Wheat closed at $6.03 1/2, up 2 1/2 cents,
May 25 MGEX Wheat closed at $6.05, up 1/4 cent,
Jul 25 MGEX Wheat closed at $6.20 3/4, up 1/4 cent,
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Source : Nasdaq.com
