CBT SRW futures closed with Friday gains of 1 1/4 to 4 cents. That left the July contract at a net 11 1/4 cent gain for the week. KC HRW futures fell by 7 to 10 cents on Friday which left the July contract at a 14 1/2 cent loss for the week’s move. Spring wheat futures were down by 2 1/2 to 5 3/4 cents at the close on Friday. September ended the week up by 6 3/4 cents. USDA left old crop’s cash average price at $8.85/bu, but lowered new crop’s by 30 cents to $7.70.
CFTC’s weekly CoT data showed managed money firms reduced their net short in SRW by 7.5k contracts via short covering. The group was still 119.5k contracts net short as of 6/6. In KC wheat the funds were closing longs which left the group 7,106 contracts net long. Spring wheat spec traders were reported at an 8,974 contract net short on 6/6. That was their strongest net short since Sep 2020.
The USDA reports made no changes to the old crop wheat S&D balance sheet. The standing estimate is for a 598 mbu carryout, with the June Grain Stocks report to finalize the season. New crop production was boosted by 6 mbu, via an 11 mbu increase for HRW, a 5 mbu decrease to SRW, and a 1 mbu trim for white winter. That adjusted the crop size to 1.665 bbu, matching the estimate going in. No other changes were made to the domestic wheat balance sheet, as carryout is now figured at 562 mbu.
USDA set the old crop wheat carryout at 266.66 MMT on the global stage. For new crop USDA raised the EU (+1.5 MMT), Russia (+3.5), Ukraine (+1) and India (+3.5) for new crop production. Chinese imports were also lifted by 1.5 MMT to 12. On net the new crop global carryout was 6.4 MMT higher to 270.7 MMT.
Jul 23 CBOT Wheat closed at $6.30 1/4, up 4 cents,
Sep 23 CBOT Wheat closed at $6.41 3/4, up 2 3/4 cents,
Cash SRW Wheat was $5.81 5/8, up 4 1/8 cents,
Jul 23 KCBT Wheat closed at $7.97 3/4, down 7 cents,
Cash HRW Wheat was $7.57 1/2, down 9 cents,
Jul 23 MGEX Wheat closed at $8.11 3/4, down 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.