Wheat prices are under pressure, with futures down 2 to 7 cents early Tuesday morning, following a $3.85 drop in crude oil prices over the weekend amid ongoing negotiations between the US and Iran. Chicago SRW futures closed down 1 ¼ cents at $6.46 ¼ on July 26, while KC HRW futures dropped 5 cents to $6.82. Open interest rose by 3,098 contracts in Chicago futures and 4,578 in KC futures on Friday.
As of May 19, managed funds reduced their net long position in CBT wheat by 14,224 contracts, bringing it to 4,799 contracts, and cut KC wheat net long positions by 7,715 contracts to 30,075 contracts. Export sales data indicates old crop wheat commitments stand at 25.241 MMT, a 16% increase from last year, while new crop commitments are down 51.45% to 2.029 MMT.
Additionally, South Korean flour mills have issued a tender for 100,000 MT of wheat from the US and Canada, with submissions due on Wednesday. The French soft wheat crop is rated 80% in good/excellent condition, according to FranceAgriMer.
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