Key Moments
- Hard red wheat contracts were trading higher on Monday morning, while the broader wheat complex showed mixed price action.
- Managed money expanded its net short position in wheat to 71,206 contracts in the week ending June 23, according to CFTC data.
- A South Korean mill issued a tender for 100,000 MT of wheat from the US and Australia, with 50,000 MT specified from the US and offers due by Tuesday.
Mixed Start for Wheat on Monday
Wheat futures began Monday trading with uneven performance, as hard red winter contracts moved higher while other wheat markets showed more varied direction. This followed a broadly weaker session on Friday, when most wheat contracts closed in negative territory.
In Chicago soft red winter (SRW) trade, front-month contracts fell between 9 cents and 12 3/4 cents on Friday. The July contract ended the week 27 1/2 cents lower. Kansas City hard red winter (HRW) futures declined 9 to 11 3/4 cents on the day, with July finishing the week down 33 cents. Minneapolis spring wheat futures slipped 8 1/2 to 11 3/4 cents on Friday, with the weekly move totaling a 47 1/2-cent decline.
Speculative Positioning and CFTC Data
Data from the CFTC for the week ending June 23 showed managed money participants adding 1,675 contracts to their net short position in wheat, bringing it to 71,206 contracts. In Kansas City wheat futures and options, speculative traders shifted back to a net short stance of 1,285 contracts, representing a change of 8,905 contracts.
Acreage Expectations Ahead of June Report
Market participants are looking ahead to the annual June Acreage report on Tuesday. Expectations are for all wheat acres to be reported at 43.8 million acres. Within that total, spring wheat acres are projected at 9.5 million acres, and durum acres are anticipated at 2 million acres, based on a Bloomberg survey of traders.
International Demand and Crop Estimates
On the export front, a South Korean milling importer has issued a tender for 100,000 metric tons of wheat sourced from the US and Australia. Of that volume, 50,000 metric tons are specified to be from the US, with a Tuesday deadline for offers.
Separately, Argus estimated the Russian wheat crop at 91.2 million metric tons, raising its outlook by 2.5 million metric tons compared to its April projection.
Wheat Futures Pricing Snapshot
Recent settlement levels and current price indications for key wheat futures contracts are shown below.
| Contract | Exchange | Last Close | Change on Friday | Current Move |
|---|---|---|---|---|
| Jul 26 Wheat | CBOT | $5.78 1/4 | down 12 3/4 cents | currently down 1 3/4 cents |
| Sep 26 Wheat | CBOT | $5.89 3/4 | down 11 3/4 cents | currently down 1 1/2 cents |
| Jul 26 Wheat | KCBT | $6.11 | down 9 1/2 cents | currently up 5 3/4 cents |
| Sep 26 Wheat | KCBT | $6.19 1/2 | down 11 cents | currently up 5 3/4 cents |
| Jul 26 Wheat | MIAX | $5.76 1/2 | down 11 3/4 cents | currently up 1 1/2 cents |
| Sep 26 Wheat | MIAX | $6.05 1/4 | down 9 3/4 cents | currently up 3 1/2 cents |
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