Wheat Extending Slide on Tuesday Morning

Wheat is feeling pressure from oil losses early on Tuesday morning with contracts down 2 to 7 cents. Crude oil is a pressure factor, down $3.85 from Friday, as the US and Iran were inching closer to a deal over the weekend, though there is nothing set as of this morning. The wheat complex pulled off the midday lows but still closed with losses on Friday across the three markets. Chicago SRW futures were steady to 1 3/4 cents in the red on the Friday session, as July was 10 ½ cents lower on the week. Open interest was up 3,098 contracts. KC HRW futures were 1 ¾ to 5 cents lower in most contracts, with July down 6 cents on the week. Open interest was up 4,578 contracts on Friday. MPLS spring wheat was fractionally to 6 cents in the red on Friday, with July slipping 4 ¼ cents last week.

Managed money was busy cutting back to their net long position in CBT wheat futures and options by 14,224 contracts as of 5/19, taking it to 4,799 contracts. In KC wheat futures and options, spec funds cut back 7,715 contracts from their net long to 30,075 contracts.

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Export Sales data has old crop wheat commitments at 25.241 MMT, which is up 16% from last year. That is also 102% of the USDA forecast and lagging the 103% average sales pace. New crop business has totaled 2.029 MMT, so far, which is down 51.45% from the same week last year

The French soft wheat crop is estimated at 80% in good/excellent conditions according to the FranceAgriMer, steady with the week prior. Durum was rated at 71% gd/ex.

A South Korean flour mill tendered for 100,000 MT of wheat from the US and Canada, with the tender due on Wednesday.

Jul 26 CBOT Wheat  closed at $6.46 1/4, down 1 1/4 cents, currently down 6 3/4 cents

Sep 26 CBOT Wheat  closed at $6.59 1/4, down 1 3/4 cents, currently down 6 cents

Jul 26 KCBT Wheat  closed at $6.82, down 5 cents, currently down 3 1/2 cents

Sep 26 KCBT Wheat  closed at $6.93 1/4, down 4 1/2 cents, currently down 2 3/4 cents

Jul 26 MIAX Wheat  closed at $6.90 1/2, down 3/4 cent, currently down 3 cents

Sep 26 MIAX Wheat  closed at $7.10 1/4, down 3/4 cent, currently down 2 3/4 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. This article was originally published on Barchart.com