Wheat Slipping Back as Ratings Improve
Wheat is trading with Tuesday AM weakness, as futures are backing off following the ratings improvement. The wheat market held onto the Monday gains at the close, with contracts posting positive trade. Chicago SRW futures were 5 to 7 cents higher. Monday’s Preliminary open interests suggested a rotation of ownership, up 389 contracts. Kansas City HRW contracts saw 6 to 7 gains at the close. Preliminary OI was up 1,893 contracts. Minneapolis spring wheat futures were 1 to 3 cents higher. Increased tensions in the Black Sea likely gave the heavily short market some reason to cover.
USDA’s weekly Crop Progress report showed winter wheat now 83% headed, 4 points ahead of normal, with harvest matching the average pace at 3% complete. Condition ratings were back up 2% to 52%, with the Brugler500 index up 4 to 336. The spring wheat crop is now 95% planted, with the average pace at 90%. Emergence was 73%, 4 percentage pints head of the 5-year average. Ratings jumped 5%, all out of the poor/very poor categories, to 50% good/excellent, with the Brugler500 up 14 to 340.
Weekly Export Inspections data tallied wheat shipments at just 552,910 MT (20.32 mbu) in the week that ended on May 29. That was back down 1.79% from the week prior but 29.4% above the same week last year. South Korea was the largest destination of 111,025 MT, with 90,792 MT headed to the Philippines and 81,130 MT to Indonesia. Marketing year shipments are now 21.825 MMT (802 mbu), an increase of 16.59% from the same week last year. USDA’s full year projection is 820 (which includes the products.
Australia’s wheat crop for 2025/26 us estimated at 30.6 MMT according to the country’s ABARES. That would be down 10% from last year if realized. Ukraine’s Ag minister estimates the country’s wheat crop near 20 to 22 MMT, which is below the 23 MMT from the USDA’s initial target.
Jul 25 CBOT Wheat closed at $5.39, up 5 cents, currently up 3/4 cent
Sep 25 CBOT Wheat closed at $5.53 1/4, up 5 cents, currently up 1 cent
Jul 25 KCBT Wheat closed at $5.39 3/4, up 6 1/2 cents, currently down 2 1/4 cents
Sep 25 KCBT Wheat closed at $5.53 1/2, up 6 1/2 cents, currently down 1 3/4 cents
Jul 25 MGEX Wheat closed at $6.27 1/4, up 1 3/4 cents, currently down 6 cents
Sep 25 MGEX Wheat closed at $6.40 1/4, up 3 cents, currently down 5 cents
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.