Wheat Sees HRW Weakness, Others Mixed

Wheat futures were mixed today, with Chicago 2 1/2 to 5 1/2 cents lower and MPLS 1 3/4 lower to 3 3/4 higher. KC HRW was down 4 3/4 to 6 1/2 cents. The nearby CBT-KC spread closed at the largest CBT premium on record at 55 1/2 cents. The milling value of HRW might be higher than SRW under normal circumstances, but these are not normal. KC protein is likely to be lower in a wet, high production year, and there is a major imbalance in stocks/use ratios between the two classes. This is not to advocate for the spread widening, but the there is a trade axiom which states “Markets can remain illogical longer than you can remain solvent”. The US ag attache raised the unofficial Russian production number from 77 MMT to 79 MMT. That is still below some of the private estimates. The Commitment of Traders report showed the funds further trimming their short position in Chicago, taking it down 10,432 in the week ending June 4 to -13,348.

JUL 19 CBOT Wheat closed at $5.04 1/2, down 5 1/2 cents,

JUL 19 KCBT Wheat closed at $4.49, down 6 1/4 cents,

JUL 19 MGEX Wheat closed at $5.68 3/4, up 3 3/4 cents

--provided by Brugler Marketing & Management

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