Just caught the wheat futures action from Wednesday morning - Chicago SRW is taking it on the chin while the other contracts are mixed. SRW closed down 2 to 4 cents yesterday with open interest dropping 2,498 contracts, but KC HRW managed to squeeze out 3 to 4 cents of gains. Interesting that there were 91 deliveries issued against March KC wheat overnight.

Weather's looking like a factor here. Eastern half of the Southern Plains is supposed to get wet over the next week, which covers most of the SRW territory. Meanwhile, the western HRW country is expecting almost nothing in terms of precipitation. That kind of split could explain some of the mixed price action we're seeing.

On the supply side, EU wheat exports hit 15.77 MMT from July through March, up 1.36 MMT year-over-year. Australia's production estimate sits at 36 MMT according to ABARES, compared to USDA's February tally of 37 MMT. Kansas crop conditions came in at 58% good/excellent, down from 61% earlier in February.

Looking at the numbers: March CBOT closed at 5.72 and a quarter (down 2 and a quarter cents), May CBOT at 5.74 (down 3 and a quarter). KC March finished at 5.70 and a half (up 3 and a half), May at 5.78 and a quarter (also up 3 and a half). Minneapolis spring wheat stayed in the green with 3 to 4 cents gains across most contracts. The divergence between these markets is worth watching.