US Wheat Review on Monday: Lower; profit-taking, corn, beans back down

 

 

U.S. futures markets closed lower Monday on profit-taking pressure from strong gains scored Friday and improving weather in U.S. wheat regions.

 

July Chicago wheat closed down 19 cents at US$5.51. July Kansas City wheat futures closed down 17 3/4 cents at US$5.97 a bushel. Minneapolis wheat futures closed down 4 1/2 cents a bushel at US$6.34.

 

"Fundamental pressure on wheat is coming from weather," said a Midwest-based market analyst. "Spring wheat planting conditions should improve amid a mostly dry outlook this week in the northern Plains. Recent rains have also been beneficial for the HRW crop in the central and southern Plains."

 

In the spring wheat regions of the northern U.S. Plains states, mostly drier and warmer weather is forecast for this week. Wet soils from previous flooding will delay spring wheat planting, with some acreage possibly not getting planted. Planting of spring wheat is well behind normal, according to Meteorlogix weather. Meantime, recent and forecast rain across the southern U.S. Plains states will favor the developing crop and help it recover from freeze damage across Texas, Oklahoma and southern Kansas, said Meteorlogix.

 

Corn and soybean futures prices backed well down from their early session highs during mid session trading, and wheat followed. Look for wheat to continue to the soybean market and corn for direction, said Victor Lespinasse, grain market analyst at www.grainanalyst.com.

 

Traders will be closely monitoring results from the Wheat Quality Council HRW tour, which starts sampling fields in Kansas on Tuesday. Early ideas are that the Kansas wheat crop is in pretty good shape following recent beneficial rains. Tour participants will issue a Kansas production estimate Thursday afternoon.

 

Weekly USDA export inspections data were also a bit disappointing for the bulls. The latest report, issued Monday morning, showed wheat inspections at 10.286 million bushels compared to 13.426 million bushels in last week's report. A lack of demand for U.S. wheat also remains a constant underlying negative factor, said the Midwest analyst.

 

The latest commitments of traders report issued by the Commodity Futures Trading Commission on Friday shows commercial interests in Chicago wheat shedding net long positions by 7,051 contracts, to 173,429 contracts. Meantime, large speculators added 2,971 contracts, to their net long positions, which now total 68,391 contracts.

 

 

Kansas City Board of Trade

 

The commitments of traders report shows commercial traders of hard red winter wheat futures decreased their net short positions by 2,995 contracts, to 37,397 contracts. Meantime, the commercial longs also decreased their net long positions by 2,416 contracts, to 32,641 contracts.

 

 

Minneapolis Grain Exchange

 

The commitments of traders report shows commercial traders of hard red spring wheat futures decreased their net long positions by 860 contracts, to 13,285 contracts. Large speculative longs increased their net long positions by 396 contracts, to 5,795 contracts.