Wheat Market Declines as Spring Planting Update Approaches

The wheat market saw declines on Monday, with contracts dropping across all three major markets. Chicago SRW futures were down between 10 to 11 cents, while Kansas City HRW futures fell by 7 to 8 cents by midday. In contrast, Minneapolis spring wheat futures remained steady but were down by up to 2 cents.

Export Inspections Show Significant Declines

Data from Weekly Export Inspections indicated that wheat shipments totaled 310,326 metric tons (11.4 million bushels) for the week ending May 1. This figure represents a 42.2% decrease from the previous week and is 8.48% lower than the same week last year. Mexico emerged as the largest destination, receiving 117,775 metric tons, while the Philippines imported 105,015 metric tons. Cumulatively, marketing year shipments have reached 19.772 million metric tons (726.5 million bushels), marking a 14.41% increase compared to the same period last year.

Crop Progress Update Expectations

As the weekly Crop Progress update approaches, analysts expect that 44% of spring wheat will be planted. Additionally, winter wheat conditions are estimated to improve, with expectations set at 50% healthy crops.

Commitment of Traders Report Highlights Increased Short Positions

The Commitment of Traders report released on Friday afternoon revealed that 31,486 contracts were added to the speculative net short in CBT wheat futures and options. This lifted their net short position to 121,415 contracts, the highest level since May 2023. For Kansas City wheat, managed funds increased their net short by 10,645 contracts, reaching a record 67,269 contracts.

Recent Purchases by Taiwan Mills

Taiwan’s mills procured a total of 68,650 metric tons of wheat from the U.S. overnight, further influencing market dynamics.

Current Wheat Prices

May 25 CBOT Wheat is currently priced at $5.25 1/4, reflecting a decrease of 1 1/4 cents.

Jul 25 CBOT Wheat is priced at $5.32 1/4, down by 10 3/4 cents.

May 25 KCBT Wheat stands at $5.28, a decline of 1/2 cent.

Jul 25 KCBT Wheat is at $5.33 1/4, down by 8 cents.

May 25 MGEX Wheat remains unchanged at $6.16 1/2.

Jul 25 MGEX Wheat is priced at $6.09 3/4, reflecting a decrease of 1 1/4 cents.

On the date of publication, Austin Schroeder did not hold any positions, either directly or indirectly, in the securities mentioned in this article. All information presented is intended solely for informational purposes. For more details, please refer to the Barchart Disclosure Policy here.

More news from Barchart.

The views and opinions expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.