Wheat futures are experiencing a decline at midday, down 4 to 5 cents, but are still maintaining much of Wednesday’s rally, driven by potential restrictions on Russian exports from the Black Sea. Chicago SRW contracts closed up between 26 to 32.5 cents, with open interest rising by 8,088 contracts, indicating new buying interest. Meanwhile, KC HRW futures increased by 23.75 to 42 cents, reaching a daily limit of 45 cents, with open interest up by 6,479 contracts.
The ongoing conflict in the Black Sea involves Russia striking vessels and port infrastructure in Ukraine’s Odesa, while Ukraine targets Russian oil refineries and tanker vessels. In terms of sales, the USDA’s weekly report showed only 235,102 MT of wheat sold for the week ending July 9, significantly below the pre-report estimate of 250,000 to 600,000 MT and the lowest figure for the new marketing year to date.
France AgriMer has revised its estimates for French wheat exports, reducing them to 7 million metric tons (MMT) outside the EU and 7.4 MMT inside the EU. Meanwhile, global wheat production estimates remain unchanged at 821 MMT, according to the International Grains Council.
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