Wheat Kicking Off Midweek Trade Weaker

The wheat market is facing weakness across the three exchanges early on Wednesday trade. Wheat posted mixed action on Tuesday, with KC continuing to lead the way higher. Chicago SRW futures were 3 to 4 cents in the red at the close. Kansas City HRW contracts were fractionally to 2 cents higher on Tuesday. Preliminary open interest showed some short covering, down 2,914 contracts. MPLS spring wheat was steady to a penny lower in the front months. CME is planning to launch their spring wheat futures and options contracts on April 14 pending regulatory review.

President Trump spoke with Russian President Putin earlier on Tuesday discussing a possible ceasefire in Ukraine.

Individual state Crop Progress reports from Monday showed KS winter wheat rated 48% gd/ex, down 2% vs. the week prior. Ratings in TX were steady at 28% gd/ex. The next week continues to look drier for much of the Southern Plains as the crop begins to exit dormancy. 

Japan is tendering for 122,456 MT of wheat from the US, Canada, and Australia, with 70,676 MT US specific. EU soft wheat export have totaled 14.92 MMT as of March 16 since the first of July, which is well behind the 22.92 MMT in the same period last year.

May 25 CBOT Wheat  closed at $5.65, down 3 1/2 cents, currently down 3 3/4 cents

Jul 25 CBOT Wheat  closed at $5.82, down 3 cents, currently down 4 1/4 cents

May 25 KCBT Wheat  closed at $6.06 1/4, up 3/4 cent, currently down 8 1/4 cents

Jul 25 KCBT Wheat  closed at $6.19, up 1 1/4 cents, currently down 7 cents

May 25 MGEX Wheat  closed at $6.14, down 1 cent, currently down 2 3/4 cents

Jul 25 MGEX Wheat  closed at $6.30 1/4, unch, currently down 3 1/2 cents