Wheat Futures Experience Declines as Speculators Adjust Positions

Wheat futures ended the Friday session lower across all major exchanges. Chicago SRW futures saw declines of 6 to 6 ¾ cents, while the December contracts expired. Meanwhile, March contracts finished the week down by 5 cents from last Friday’s close. KC HRW contracts dropped between 4 ¾ to 7 ½ cents on the day, although March contracts recorded a 3 ¼ cent increase since last week. MPLS spring wheat also faced losses, with prices falling by 2 ½ to 5 ¼ cents during the session. However, March MGE wheat increased by 2 cents over the week.

Recent Commitment of Traders data revealed that speculators trimmed their net short position in Chicago wheat by 2,607 contracts as of December 10, bringing the total to 66,779 contracts. In Kansas City wheat, they cut down their net short position by 1,994 contracts, leading to a total of 36,436 contracts as of Tuesday.

Weather Forecast and Export Sales Report

The weather forecast for the next week indicates precipitation throughout the eastern half of the United States, particularly along the Mississippi River. Most regions of HRW, however, are expected to remain dry.

According to the weekly Export Sales report, total wheat and wheat product shipments reached 11.045 million metric tons (MMT), marking a 31% increase compared to the previous year. This amount represents 47% of the new USDA forecast, which falls short of the 51% average pace. Current commitments stand at 15.991 MMT, which is 10% higher than last year and 69% of the new USDA figure, yet behind the average of 76%.

Dec 24 CBOT Wheat closed at $5.26 1/2, down 12 1/4 cents.

Mar 25 CBOT Wheat closed at $5.52 1/4, down 6 1/4 cents.

Dec 24 KCBT Wheat closed at $5.38 3/4, down 7 1/2 cents.

Mar 25 KCBT Wheat closed at $5.57, down 5 3/4 cents.

Dec 24 MGEX Wheat closed at $5.82 1/4, unchanged.

Mar 25 MGEX Wheat closed at $5.98 1/2, down 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.