This week closed with a decline in the wheat market. Chicago SRW futures recorded losses between 7 and 8 cents on Friday, although July futures gained 3 ¼ cents over the week. Meanwhile, Kansas City HRW contracts dropped 11 to 12 cents on Friday, ending the week with a modest weekly loss of just a penny. In Minneapolis, spring wheat futures fell 5 to 6 cents on Friday, with July futures down 20 ¼ cents for the week.

Manager Positions Shifting

The latest Commitment of Traders data indicates that money managers in Chicago wheat futures and options increased their net short position by 13,161 contracts as of May 13th. Their new net short position reached 126,895 contracts, the highest in nearly two years. In Kansas City wheat, they extended their record net short position by 8,559 contracts, bringing the total to 80,799 contracts.

Export Sales Data

The weekly Export Sales report now lists old crop commitments for wheat at 21.689 million metric tons (MMT), which represents 97% of the USDA export forecast, with just over three weeks remaining in the marketing year. Historically, the average for this period is 104%. Actual exports reported by FAS stand at 19.637 MMT, fulfilling 87% of the forecast, with the average shipping pace at 93%.

Crop Conditions and Global Demand

FranceAgriMer has assessed the French soft wheat crop to be rated at 73% good/excellent, a slight decrease of one percentage point from the previous week. Additionally, South Korean mills are tendering for 50,000 metric tons of U.S. wheat.

Current Wheat Futures Prices

Jul 25 CBOT Wheat closed at $5.25, down 7 3/4 cents.

Sep 25 CBOT Wheat closed at $5.39, down 7 1/2 cents.

Jul 25 KCBT Wheat closed at $5.16 1/2, down 11 3/4 cents.

Sep 25 KCBT Wheat closed at $5.30 1/2, down 11 1/2 cents.

Jul 25 MGEX Wheat closed at $5.73 1/4, down 6 3/4 cents.

Sep 25 MGEX Wheat closed at $5.87 1/4, down 5 3/4 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.

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