Commentary
Russia’s government echoed last week’s statement over the weekend saying they maybe declaring a national emergency due to the frosts that damaged crops earlier this season. The light volume night session surged over 20 cents higher in Chicago and KC wheat. However, there’s an old adage that states that renewed headlines on old news have a tendency to suffer a quick demise. That in my view did in wheat during the day session as the overnight rally vanished in the first half hour of trading. The Russian headline introduced no new information and the Russian cash markets were unmoved by the govt statement in my opinion. Private wheat production estimates are predicted near the 80 to 83 million metric ton range, although a few guesses are now dropping into the upper 70s. Drought is actually the bigger problem currently in Southern Russia, and the next 10 days continue to look hot and dry for the southern half of Russia’s wheat belt. July SRW wheat fell 5 3/4 cents at $6.72 3/4 and nearer the session low. July HRW or KC wheat lost 8 3/4 cents at $7.00 and nearer the session low. July spring wheat futures closed 6 cents lower to $7.33 3/4. The wheat futures markets maybe also feeling the selling pressure from the recent downdrafts in the corn, soybeans and soybean meal futures markets. Watch the headlines coming out of Russia and Black Sea. This market has a “story” but faces headwinds as winter wheat harvest gets underway.
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