Wheat’s Recovering some for Tuesday
Yesterday’s sharp drop out of the weekend was shown as a long liquidation selloff, as the SRW futures lost 6.3k contracts of OI. For Tuesday, the market is humbly recovering 2 to 5 cents across all domestic classes. Wheat followed last week’s rally with losses of as much as 4% on Monday. KC HRW led the way lower with 4.4% losses. The March HRW contract saw a 33 ¼ cent range on the day and ended just 2 cents off the low. Chicago SRW futures were down by 3% to 3.8% with 20 cent losses. The March contract was also just 2 ¼ cents off the low for the close. Spring wheat prices fell by 17 cents with 2.4% losses. The HRS to SRW premium is now back over $1/bu.
Wheat exports were 281,697 MT for the week that ended 12/07, according to the USDA’s Export Inspections report. While seemingly small, that was a 50% increase for the week, and was up 60k MT from the same week last year. The report had white wheat at 103k MT of the total and HRS as 96k MT of the total. The accumulated wheat exports reached 8.6 MMT, compared to 11.1 MMT at the same point last year.
Russia is a small producer of durum wheat and is restricting exports for that class between now and June. This is presumably because exports through mid-November were over 650,000 MT compared to only about 52,000 MT a year ago.
Mar 24 CBOT Wheat closed at $6.09 1/2, down 22 1/4 cents, currently up 3 cents
May 24 CBOT Wheat closed at $6.19 1/4, down 21 1/4 cents, currently up 2 1/4 cents
Mar 24 KCBT Wheat closed at $6.32 1/4, down 28 3/4 cents, currently up 5 1/2 cents
Mar 24 MGEX Wheat closed at $7.11 3/4, down 17 3/4 cents, currently up 1 cent
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.
