Market Analytics and Technical Considerations
Key Points
Domestic classes of wheat saw losses of double digits at the Friday settlement. CBT SRW ended the day down between 2.4% and 2.8%, or 36 cents, for the week in March. On the day, KC HRW futures lost 17 to 21 cents, resulting in a weekly net loss of 41 1/4 cents. Friday saw MGE HRS prices fall 12 3/4 to 16 3/4 cents, with March losing 28 1/4 cents between Friday and Friday.
According to weekly COT data, speculative traders in CBT wheat increased their net short position by 666 contracts to 54,068 during the week that ended on November 29.With +1.5k contracts added on both sides, the funds’ net long remained unchanged at 17,129 contracts in KC wheat. At the 11/29 close, speculative traders were net short 1,429 MGE wheat contracts. That added 777 net short contracts through light net new selling.
According to the StatsCan report, Canada produced 33.824 MMT of wheat in the 22/23 season. That is a decrease of 900,000 MT from their figure in September, which corresponded to the lowest end of pre-report estimates. Canada harvested 35.44 MMT of wheat in 20–21, down from 22.3 MMT in 21–22 due to drought. Spring wheat, in particular, was reported at 25.68 MMT, as opposed to the previous 26.1 MMT and the anticipated 25.9 MMT.
According to FranceAgriMer, 99% of their 23–24 wheat crop, including 89% of the anticipated durum ground, was planted.98% of the time, the conditions were good or very good.
According to reports, buyers in Thailand ordered 123k MT of feed wheat from Australia. Following a tender for 500k MT, Algeria is thought to have purchased 450k MT of milled wheat of optional provenance. According to reports on the wire, Taiwan bought 42,750 MT of milled wheat from the United States.
- 22 Dec CBOT Wheat lost 21 1/2 cents to settle at $7.37 1/4.
- Wheat on the CBOT closed on March 23 at $7.61, down 22 cents.
- Cash SRW Wheat was down 22 1/8 cents at $6.89 3/8.
- 22 Dec KCBT Wheat lost 21 cents to close at $8.82.
- Cash HRW Wheat price fell 19 1/2 cents to $8.36.
- MGEX Wheat ended the day on December 22 at $9.39 3/4, down 14 3/4 cents.
