Wheat Futures Rally as Market Shows Signs of Recovery

Wheat bulls are making strides to establish a market bottom, as futures rose across the three exchanges on Friday. Chicago SRW futures closed higher, gaining 11 to 12 cents, although they ended the week down 2 cents for July. Kansas City HRW futures also saw increases, closing 12 to 14 cents up for the day, despite a weekly loss of 9 ¾ cents. Notably, Minneapolis spring wheat futures posted gains of 14 to 16 cents, with July up 4 ¾ cents for the week.

Commitment of Traders Report Highlights Market Dynamics

The Friday afternoon Commitment of Traders report indicated that speculators added 31,486 contracts to the net short position in CBT wheat futures and options. This raised the net short to 121,415 contracts, marking the highest level since May 2023. In the Kansas City market, managed money accrued 10,645 contracts, taking their net short to a record 67,269 contracts.

Export Sales and Global Purchases Impacting Market

U.S. Export Sales data revealed wheat export commitments at 21.555 million metric tons (MMT), reaching a four-year high as the marketing year nears its conclusion. This figure represents 97% of the current USDA export forecast but is trailing the 104% average sales pace for this time of year. Additionally, South Korean mills secured 35,800 MT of wheat from the U.S. overnight. Meanwhile, French soft wheat ratings remained stable at 74% good/excellent, according to FranceAgriMer, unchanged from the previous week.

Closing Prices for Wheat Futures on May 25

CBOT Wheat:
May 25 – closed at $5.26 1/2, up 11 1/4 cents
July 25 – closed at $5.43, up 12 cents

KCBT Wheat:
May 25 – closed at $5.28 1/2, up 12 1/2 cents
July 25 – closed at $5.41 1/4, up 13 3/4 cents

MGEX Wheat:
May 25 – closed at $6.16 1/2, unchanged
July 25 – closed at $6.11, up 15 1/2 cents

On the date of publication, Austin Schroeder had no direct or indirect positions in any of the securities mentioned in this article. All information and data are for informational purposes only. Please refer to the Barchart Disclosure Policy for more details.
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