Wheat Futures Decline Amid Ongoing Russia-Ukraine Negotiations
The wheat complex faced downward pressure on Tuesday. Chicago SRW futures decreased by 5 to 6 cents in the front months, while Kansas City HRW contracts closed lower by 8 to 9 cents. MPLS spring wheat also saw a decline, finishing the day down 3 to 5 cents.
Ceasefire Negotiations Progressing
In ongoing ceasefire negotiations, Russia and Ukraine have both agreed to ensure safe navigation in the Black Sea, reflecting terms similar to the previous Black Sea Grain Initiative. In addition, both nations committed to refraining from attacks on energy facilities.
Commodity Updates
SovEcon revised its 2024/25 Russian wheat export projections down by 1.5 million metric tons (MMT), now estimating 40.7 MMT. Conversely, they increased the 2025/26 export forecast by 0.2 MMT, bringing it to 39.1 MMT. According to data from the European Commission, EU soft wheat exports since July 1 have reached a total of 15.46 MMT, a decline from 23.75 MMT during the same period last year.
International Demand
Japan is currently seeking to purchase 119,847 MT of wheat in their weekly agricultural ministry tender, with 59,751 MT specified for U.S. origin, due on Thursday.
Wheat Futures Closing Prices
For those tracking market movements, here are the closing prices for wheat futures on May 25:
- CBOT May 25 Wheat: $5.43 1/4, down 5 cents
- CBOT Jul 25 Wheat: $5.59 3/4, down 5 1/2 cents
- KCBT May 25 Wheat: $5.69 1/4, down 8 3/4 cents
- KCBT Jul 25 Wheat: $5.84 3/4, down 8 1/4 cents
- MGEX May 25 Wheat: $5.88 1/2, down 3 3/4 cents
- MGEX Jul 25 Wheat: $6.05, down 4 1/4 cents
On the date of publication, Austin Schroeder did not possess (either directly or indirectly) positions in any securities mentioned in this article. All information and data are for informational purposes only. For more details, please review the Barchart Disclosure Policy.
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