Wheat Extends Weakness on Black Sea Pressure
Wheat futures are continuing to slide lower so far on Wednesday morning. The complex was under pressure on Tuesday. Chicago SRW futures were down 5 to 6 cents in the front months. Tuesday’s preliminary open interest data showed an increase of 1,665 contracts. Kansas City HRW contracts closed 8 to 9 cents in the red on the day. Preliminary open interest was up 2,695 contracts. MPLS spring wheat was 3 to 5 cents lower at the close.
In fresh rounds of negotiations trying to reach a ceasefire, Russia and Ukraine have both agreed to ensure safe navigation in the Black Sea, similar to the previous Black Sea Grain Initiative, and to ban attacks on energy facilities.
SovEcon trimmed their 2024/25 Russian wheat export projection by 1.5 MMT to 40.7 MMT. They also increased their 2025/26 export forecast by 0.2 to 39.1 MMT. EU soft wheat export since July 1 have totaled 15.46 MMT, vs. the 23.75 MMT in the same period last year according to European Commission data.
Japan is tendering for 119,847 MT of wheat in their weekly ministry of ag tender, due on Thursday and 59,751 MT US specific.
May 25 CBOT Wheat closed at $5.43 1/4, down 5 cents, currently down 2 3/4 cents
Jul 25 CBOT Wheat closed at $5.59 3/4, down 5 1/2 cents, currently down 3 cents
May 25 KCBT Wheat closed at $5.69 1/4, down 8 3/4 cents, currently down 2 ¼ cents
Jul 25 KCBT Wheat closed at $5.84 3/4, down 8 1/4 cents, currently down 2 ½ cents
May 25 MGEX Wheat closed at $5.88 1/2, down 3 3/4 cents, currently down ¾ cent
Jul 25 MGEX Wheat closed at $6.05, down 4 1/4 cents, currently down 1 cent
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.