Wheat Futures Take a Hit: Market Experiences Notable Losses

Grain Exchanges Struggle as Prices Drop Across the Board

The wheat market struggled on Friday, with all three exchanges experiencing double-digit losses. Chicago SRW futures dropped between 5 ½ to 12 ½ cents, with December contracts down 3 ¾ cents for the week. Kansas City HRW contracts fell by 13 to 15 cents, and December prices slid 8 ¾ cents since last Friday. Meanwhile, MPLS spring wheat recorded losses ranging from 4 ½ to 17 ½ cents, led by a decline of 11 ¼ cents in December contracts.

Looking ahead, some precipitation is anticipated in the eastern Plains next week, extending into parts of SRW territory, which may offer relief to crops.

According to the Weekly Export Sales data, total export commitments stand at 13.202 million metric tons (MMT), amounting to 59% of the USDA’s export forecast. This figure is slightly below the five-year average by one percentage point.

In the realm of trading, managed money expanded their net short positions in CBT wheat futures and options by 2,902 contracts during the week of October 22, bringing their total to a net short of -28,915 contracts, as reported by CFTC data. In contrast, KC saw a reduction in net short positions, trimming 841 contracts to reach a total of -5,647 contracts.

On a regional note, Argentina’s Rosario Grain Exchange has projected the country’s exports for 2024/25 at 13.3 MMT, which would mark the second-largest total on record. Additionally, FranceAgriMer reports that 21% of the soft wheat crop is currently planted in France, a significant decrease from 50% last year.

Dec 24 CBOT Wheat closed at $5.69, down 12 1/2 cents.

Mar 25 CBOT Wheat closed at $5.89 1/4, down 11 1/2 cents.

Dec 24 KCBT Wheat closed at $5.72, down 15 cents.

Mar 25 KCBT Wheat closed at $5.86 1/4, down 15 cents.

Dec 24 MGEX Wheat closed at $6.05 1/4, down 12 3/4 cents.

Mar 25 MGEX Wheat closed at $6.27 1/2, down 12 1/4 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.