Wheat At Highs into Monday’s Day Trade

Wheat prices are sitting fractionally to 6 cents in the black to start your Monday, keeping the SRW contracts at their overnight highs. The last trade day of the week ended with wheat in the black. Chicago prices ended 4 ¼ to 6 ¾ cents higher on Friday, with a net 25 ½ cent rally for the week for March. March SRW gained a net 12 ¾ cents through November. HRW futures ended the last trade day of the week 1 ¾ to 4 cents higher across the front months leaving the HRW/SRW premium at 44 cents. Spring wheat futures were ¾ to a penny higher at the close. 

There were 217 deliveries vs. December CBT wheat over the weekend, with most going back to other hands within the same firms. 

CFTC data showed spec traders were closing longs and extending shorts in CBoT wheat during the week that ended 11/28. That left the group 11.8k contracts more net short at 119,986 contracts. Managed money funds were adding to their HRW positions with 7.2k more contracts in play. That, on net, added 2,236 contracts to their net short, now at 49.7k contracts. Spring wheat spec traders were 1,309 contracts more net short at 28,917 as of 1/28. 

Estimates going into the StatsCan Crop Production report show traders are looking for wheat output around 31.1 MMT, and between 29.3 and 32.3 MMT. Last year’s wheat production was 29.8 MMT, and USDA is currently using 31 MMT. By class, traders are looking for StatsCan to show 24 MMT for spring wheat and 4.1 for durum. 

Dec 23 CBOT Wheat  is at $5.77 1/2, up 7 1/4 cents, currently up 6 3/4 cents

Mar 24 CBOT Wheat  is at $6.09 1/4, up 11 1/4 cents, currently up 5 1/2 cents

Cash SRW Wheat  is at $4.75 5/8, up 11 5/8 cents,

Mar 24 KCBT Wheat  is at $6.47 3/4, up 4 3/4 cents, currently up 3 cents

Cash HRW Wheat  is at $5.47 3/8, up 5 1/4 cents,

Mar 24 MGEX Wheat  is at $7.32 1/2, up 3 cents, currently up 3/4 cents 

On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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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