Wheat Posting Tuesday AM Strength Following Lack of Peace Talks Progress

Wheat is trading with 5 to 16 cent gains across the three markets so far on Tuesday morning as the market comes back from the Labor Day holiday. The wheat complex is showing money flow come out ahead of the long weekend, the three exchanges facing pressure. Chicago SRW contracts were down 20 to 21 ½ cents on Friday, with December dropping back 50 cents last week. Friday’s open interest was down 2,161 contracts. KC HRW futures were 11 ¾ to 15 cents lower at the close, with December slipping back 42 cents from last Friday’s close. Open interest was down 4,105 contracts, suggesting some profit taking. MPLS spring wheat was 19 ½ to 22 cents in the red on Friday, with December down 24 ¼ cents last week. 

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.

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  closed at $7.16, down 20 cents, currently unch 

Dec 26 CBOT Wheat  closed at $7.34, down 20 1/4 cents, currently up 9 1/4 cents

Sep 26 KCBT Wheat  closed at $7.86 3/4, down 28 cents, currently up 16 1/4 cents

Dec 26 KCBT Wheat  closed at $8.02 1/4, down 13 1/4 cents, currently up 11 1/4 cents

Sep 26 MIAX Wheat  closed at $7.20, down 39 3/4 cents, currently up 24 cents

Dec 26 MIAX Wheat  closed at $7.45, down 20 1/2 cents, currently up 5 1/2 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.