In the latest trading session, winter wheat showed varied results, while spring wheat prices continued their upward trend. Chicago soft red wheat (SRW) futures remained stable, experiencing a slight dip of up to 2 cents. Notably, July futures fell back by 8.5 cents since last week. Conversely, Kansas City hard red wheat (HRW) contracts closed with marginal increases of 1 to 2 cents, although July futures saw a decline of 5.5 cents this week. On a positive note, Minneapolis spring wheat futures recorded gains between 9 and 10 cents, with July futures climbing 9 cents over the week.
Recent export sales data indicated a net reduction of 128,797 metric tons (MT) of wheat for the 2024/25 marketing year. This outcome fell within the anticipated range of net reductions, estimated to be between 200,000 MT and 100,000 MT in actual sales. However, new crop wheat figures reached 711,368 MT, landing on the higher end of predictions ranging from 300,000 MT to 800,000 MT. This marks a three-week low in sales. The leading buyer during this period was an unidentified destination that acquired 213,000 MT, followed by Mexico with 140,000 MT and South Korea purchasing 115,000 MT.
Data released by the Commodity Futures Trading Commission (CFTC) on Friday revealed that managed money entities reduced their net short positions in Chicago wheat futures and options by 7,667 contracts, bringing their total to 101,226 contracts as of May 27. In Kansas City, the reduction was slightly less significant, with 801 contracts cut from their large net short position, bringing the total down to 79,361 contracts as of Tuesday.
On the European front, FranceAgriMer has assessed the French soft wheat crop’s condition at 70% rated as good or excellent. This is a slight decrease from the previous week’s rating of 71%.
These updates reflect the current state of the wheat market, including fluctuations in futures contracts, export activities, and agricultural assessments. Stay informed to navigate the complexities of the agricultural commodities market.
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