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Commentary
Wheat markets were mostly weaker most for the session but turned slightly higher into the close. Turmoil continues in the Black Sea with Ukraine refinery attacks and Russia sending ballistic missiles towards Kiev. Wheat markets chop steady to lower and that continues as the market looks to find a bottom as better rains hit drought plagued areas of Texas and Oklahoma. Intermarket spreads continue to correct. It is my belief that funds look to be paring down the long KC position they have been holding, this is the main move in these spreads’ vs Chicago and Minneapolis. Kc vs Chicago below. Cash markets are pretty quiet with the exception of spring wheat; basis is moving higher. Crop progress reports out yesterday afternoon showed US winter wheat plantings making some nice progress from last week up 15% to 51% complete. Current progress still lags average of 58%. I look for KC to continue to grind lower vs Chicago in the near term as fund repositioning continues. No trade recommendations as of this post.
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Sean Lusk
Vice President Commercial Hedging Division
Walsh Trading
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