Markets

Pre-Opening Wheat Market Report

July wheat was up 4 cents late in the overnight session. Outside market forces looked mixed , as weakness in other commodity markets was somewhat offset by a weaker US dollar late in the overnight session. The outlook for more heavy rains in the Dakotas and south/central Canada this week could aggravate a potentially tight situation for the spring wheat crop this year. This has helped support the market overnight. Wheat is cheap relative to corn in the cash markets, and this is contributing to talk of better feed demand ahead. China and others are considering feeding more wheat this year due to the recent steep discount. Last week's Crop Progress report showed a record late plantings pace for spring wheat, and traders will be watching Montana's and North Dakota's data this week for a clue on just how much acreage might be lost. Harvest weather for the winter wheat crop looks favorable this week. July wheat managed to close moderately higher on the session Friday, its highest close since June 3rd. The market pushed lower early in the session on follow-through technical selling after the weak close Thursday and negative outside market influences. A surge in the US dollar and weakness in other commodity markets helped to pressure the market as well. Weakness in European wheat due to better than expected rains in the forecast for France also helped to pressure. July wheat was trading near 13 cents higher on the day into the mid-session with December wheat still down 10 cents. Short-covering for the July contract and ideas that the market was oversold after a break of nearly 90 cents off of the May 27th high plus a turn up in July corn helped support the market. Ideas that feed usage could improve over the near-term with nearby futures at a 40 cent discount to corn lent support. The Commitments of Traders reports as of June 7th showed non-commercial traders were net long 16,638 contracts, a decrease of 11,382 for the week. The selling trend is seen as a short term negative force. Commodity index traders held a net long position of 204,281 contracts, up 1,417 contracts for the week.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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