July wheat was trading 7 1/2 cents lower late in the overnight session. Outside market forces look slightly negative with a firm US dollar and weakness in metal and energy markets. There were only 2 contracts for first notice day deliveries which came as a positive factor. At one point, traders were expecting 500-1,500 contracts. Traders will monitor the Kansas wheat tour this week and some areas of Kansas need some rain but traders are looking for mostly favorable conditions. Improving weather in Europe and Eastern Europe and a lack of a significant freeze event in the eastern US this past week leaves a bit of a negative tilt to the weather and crop conditions. July wheat rose to the highest price level since April 10th early in Friday's session. News of China actively buying US corn helped to support. July wheat finished the week with a gain of 27 cents. A strong rally in corn and reports of cold weather moving into central Indiana Friday morning with temperatures dropping into the 20's were seen as the key supportive factors. However, traders do not see significant damage with the cold weather and the weather outlook for the winter wheat belt looks favorable ahead. A large sell off in the US Dollar and active buying of corn and soybeans from China were also seen as positive forces, helping to spark additional short covering on Friday. The Commitments of Traders reports as of April 24th showed Non-Commercial traders were net short 44,198 contracts, a decrease of 11,352 contracts for the week and the short-covering buying trend is seen as a short-term positive force. Non-Commercial and Nonreportable combined traders held a net short position of 67,940 contracts, down 7,635 for the week and again; short-covering. Commodity Index traders held a net long of 218,082 contracts, down 7,787 contracts for the week which is negative. Taiwan is in the market for 56,500 tonnes of US wheat.
Join the Discussion