Wheat Rallies into Weekend

Wheat bulls were feeling better heading into the weekend, as Friday posted a round of strength. Chicago contracts were up 11 to 19 ¼ cents across the board, with May getting thin and July up just a tick on the week. Kansas City futures were 6 ½ to 14 cents in the green across most contracts, as July was down 4 cents from last Friday. MPLS spring wheat futures were 4 ¾ to 8 ¼ cents higher, as July carried the load on the week, up 11 cents.

The 7-da QPF from NOAA shows very light precip totals in the western portion of the Plains over the next week. Parts of the middle and eastern Plains are expecting some precip totals, with SRW expecting anywhere from 1 to 3 inches.

CFTC Commitment of Traders data pegged spec funds in CBT wheat slashing 28,318 contracts from their net short position as of 4/30 at 47,886 contracts. That was the smallest net short since last July. In KC wheat, they cut a large 18,598 contracts from that net short position to 29,610 contracts as of Tuesday.

Dryness concerns in Russia have caused IKAR to trim their Russian wheat crop estimate by 2 MMT to 91 MMT. Forecasts are shifting to a drier pattern over the next couple weeks. Algeria purchased an estimated 240,000 to 300,000 MT of wheat in their recent tender on Thursday.

May 24 CBOT Wheat closed at $6.06, up 24 1/2 cents,

Jul 24 CBOT Wheat closed at $6.22 1/2, up 18 1/4 cents,

May 24 KCBT Wheat closed at $6.60, up 23 cents,

Jul 24 KCBT Wheat closed at $6.50 1/4, up 13 3/4 cents,

Jul 24 MGEX Wheat closed at $7.14 1/2, up 5 1/4 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.