Wheat Prices Decline Amid Strong Dollar Pressures
The wheat market experienced notable declines on Friday as prices fell across all categories. Chicago SRW futures dropped by 3 1/4 to 4 3/4 cents, although December futures still showed a gain of 7 ¾ cents for the week. In the Kansas City (KC) market, HRW contracts faced losses between 1 ¼ and 2 ½ cents, yet December remained 14 ¼ cents up overall this week. Meanwhile, MPLS spring wheat saw a slight reduction of up to 2 1/4 cents, with December futures up by 13 ¾ cents weekly. With December wheat options expiring today and first notice day expected next Friday, the today’s trading was notable. The ongoing strength of the US dollar, which recently reached a two-year high, also contributed to market pressures.
Market Sentiment Shows Increased Short Positions
According to the CFTC’s Commitment of Traders report, managed money in Chicago wheat held a net short position of 51,546 contracts as of the latest week, marking an increase of 6,239 contracts. In Kansas City wheat, net shorts climbed to 29,375 contracts, a rise of 4,277 since the previous Tuesday. For Minneapolis Grain Exchange (MGE) spring wheat, traders neared record net short positions, currently at 30,002 contracts, which reflects an increase of 7,578 contracts compared to last week.
Export Sales Show Year-Over-Year Growth
On Thursday, data from Export Sales revealed marketing year wheat and product shipments increased by 32% year over year, totaling 10.078 million metric tons (MMT). This volume represents 44% of the USDA’s projected total for the marketing year, slightly trailing the 47% average rate. Overall commitments now sit at 14.939 MMT, which is a 23% increase from last year and equals 67% of the USDA’s projections, just below the 69% average pace.
French Wheat Crop Shows Improvement
In France, planting for the soft wheat crop is progressing well, with 90% now planted compared to 78% in the previous week and 73% at this time last year. Additionally, 88% of the crop is rated in good or excellent condition, improving from 83% last year.
Latest Closing Prices for Wheat Futures
Dec 24 CBOT Wheat closed at $5.44 1/4, down 4 1/2 cents.
Mar 25 CBOT Wheat closed at $5.64 3/4, down 4 3/4 cents.
Dec 24 KCBT Wheat closed at $5.54 1/4, down 1 1/4 cents.
Mar 25 KCBT Wheat closed at $5.65 1/2, down 1 3/4 cents.
Dec 24 MGEX Wheat closed at $5.86, down 2 cents.
Mar 25 MGEX Wheat closed at $6.01 1/2, down 3/4 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
