Wheat Posting Tuesday Gains Following Lack of Peace Talk Progress

The wheat complex is trading higher across the board. Chicago SRW contracts are up 4 to 7 cents at midday. Friday’s open interest was down 2,161 contracts. KC HRW futures are showing gains of 5 to 7 cents so far on Tuesday. MPLS spring wheat is trading with 6 to 7 cent gains so far.

A US envoy visited Russia and Ukraine over the weekend to discuss options for a peace deal between the two countries. The talks made little immediate progress as Russia struck Ukraine’s capital overnight and Ukraine’s president Zelensky stated that he expects the war to continue into winter.

Tuesday’s weekly Export Inspections report showed wheat shipments of 342,733 MT (12.59 mbu) in the week of 9/3. That was 20.66% below the week prior and 20.13% below the same week last year. Mexico was the largest destination of 68,658 MT, with 68,049 MT shipped to Indonesia and 65,885 MT to Vietnam. Shipments for the marketing year are now 5.13 MMT (188.5 mbu) of wheat, which is 27.75% below the same period last year.

Commitment of Traders data showed managed money flipping back to a net long of 14,654 contracts in CBT wheat futures and options the week of September 1, a move of 28,825 contracts. Spec funds were adding to their KC wheat net long by 6,222 contracts to 50,284 contracts. 

The Saudi Arabia tender for 535,000 MT was cancelled after offer submitted were unsuitable. South Korean importers tendered for 100,000 MT of wheat from the US and Canada.

Sep 26 CBOT Wheat  is at $7.28, up 12 cents,

Dec 26 CBOT Wheat  is at $7.38 3/4, up 4 3/4 cents,

Sep 26 KCBT Wheat  is at $8.06, up 19 1/4 cents,

Dec 26 KCBT Wheat  is at $8.09 3/4, up 7 1/2 cents,

Sep 26 MIAX Wheat  is at $7.20, unch,

Dec 26 MIAX Wheat  is at $7.52, up 7 cents,

On the date of publication, Austin Schroeder 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.