Wheat Still Strong Heading Into Holiday Weekend
Wheat markets closed mixed on Friday, with Chicago down ¾ while Kansas City gained 8 ½ to 11 ¼ points. MPLS spring wheat contracts rose by 7 ¼ to 10 ¼ cents. Total wheat sales reached 97% of USDA’s forecast, pacing ahead of the average. Spec traders reduced net short positions in Chicago wheat to the lowest since October 2022. Taiwan is tendering for 96,850 MT of US origin wheat.
The wheat complex went home with mixed on Friday, as profit taking ahead of the Memorial Day weekend nudged the July and September CBT contracts into negative territory. Everything else was up. Chicago settled ¾ lower to 2 higher. Kansas City futures were up 8 ½ to 11 ¼ going home. MPLS spring wheat contracts gained 7 ¼ to 10 ¼ cents from Thursday to Friday, with nearby July up a stout 5.8% for the week.
Total wheat (and products) shipped and unshipped sales are now at 97% of USDA’s forecasted total, with just a couple weeks left in the MY. The average pace is for 105% in commitments by now, though actual Census shipping data is running well ahead. Looking ahead towards new crop, FAS data has 3.49 MMT in forward sales, which is 58% above the same point compared to last year.
Friday’s Commitment of Traders report indicated spec traders in Chicago wheat cutting another 3,658 contracts from their net short position to 24,593 contracts by May 21, the smallest since October 2022. In Kansas City futures, they trimmed just 503 contracts from that short position to 16,764 contracts as of Tuesday.
Taiwan is tendering for 96,850 MT of US origin wheat, with offers due on May 30. French soft wheat was rated at 63% gd/ex according to FranceAgriMer, down 1% on the week, with durum down 2% to 64% gd/ex.
Source Link: https://www.barchart.com/story/news/26445818/wheat-still-strong-heading-into-holiday-weekend
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