Commodity Funds Establish Record Net Short in Minneapolis Wheat Futures

For HRS specifically, the USDA is projecting a 22% year-over-year increase in HRS ending stocks, the highest since 1987/88. That, coupled with relatively weak dependence for higher protein HRS wheat for blending purposed, bodes bearishly for HRS wheat. HRS demand is weakened, even with the drop in the average protein level in HRW wheat this year, by large stocks of high quality and high protein HRW in storage.