Ray Grabanski, Progressive Ag
Wheat The wheat complex started the week in the red in follow through selling to the June 29 quarterly report that showed spring wheat acreage at 13.2 million acres compared to the average trade guess of 12.41 million acres. All U.S. wheat acres came in at 47.82 million acres compared to the average guess of 47.12 million acres versus 47.34 million from the March intentions report.
Wheat The wheat market continued its downward momentum at the start of the week with Australia experiencing rainfall and export inspections continuing their dismal pace giving bears the upper hand. South Korea agreed to accept Canadian wheat June 26 after halting buying last year due to concerns over genetically modified wheat.
Wheat The wheat market continued its slide this week on greatly improved spring wheat condition ratings. Spring wheat conditions improved 8 percent to 78 percent good to excellent. Only 3 percent of the crop is rated poor to very poor. Spring wheat headed is at 9 percent compared to 12 percent for the five-year average. Winter wheat condition ratings improved 1 percent to 39 percent good to excellent. Twenty-seven percent of the winter wheat is harvested compared to 19 percent for the five-year average.
Wheat The wheat market experienced very choppy to lower trade this week. The U.S. Department of Agriculture's monthly World Agricultural Supply and Demand Estimates (WASDE) report showed lower than expected U.S. ending stocks, but slight increases in world ending stocks.
Wheat The wheat market experienced very choppy trade this past week with Kansas City contracts taking a 20 cent hit in June 4 trade. All contracts recovered for the week but would typically open strong daily only to fade and close near the lower end of the daily trading ranges.
Wheat The wheat market started out sharply higher in May 29 trade with Kansas City and Chicago. July contracts reached new 2018 calendar year highs only to reverse and close lower on the day. Kansas City reached $5.7475 and Chicago reached $5.54. So both the Kansas City and Chicago contracts have been making higher highs the last few times they have rebounded off support levels. Minneapolis reached $6.495, missing the May 24 high of $6.51.
Wheat The wheat market experienced very choppy trade but overall upward movement for the week. September reached a recent contract high of $6.5375 before retreating in May 23 trade. July Chicago also reached a recent high of $5.4525, while July Kansas City failed to reach its recent high of $5.685 by 4 cents.
Wheat The wheat market was under pressure all week after Chicago and Kansas City contracts reached new highs for the move to levels last seen since late July 2017. Rain forecasts dominated the trade this week. Dry regions of Australia, southern Russia and both U.S. winter and spring wheat belts all showed increased chances of rain in six to 10 day forecasts leading to heavy selling pressure.
Wheat The wheat market started out explosively higher this week in the Kansas City and Chicago contracts with Minneapolis tagging along. There were no deliveries against the Chicago May contract on April 30 and May 1. This lack of delivery pushed the Chicago May contract up 34 cents in two days. It was obvious that funds were covering short positions. The latest Commodity Futures Trading Commission data released April 24 showed funds adding 5,000 net short positions in Chicago.