Wheat Futures Extend Losses as Energy Prices Slide

Key Moments

Early Monday Trade: Wheat Under Pressure

Wheat futures are under notable pressure in early Monday action, with prices showing double-digit declines across the complex. This follows a weaker close into the weekend for Chicago, KC, and Minneapolis contracts.

Chicago SRW wheat ended the previous session with losses ranging from 2 1/4 to 3 1/4 cents, though the July contract still finished the week up 4 1/2 cents overall. Open interest in Chicago wheat declined by 7,991 contracts on Friday, driven largely by a 16,186-contract drop in July positions.

KC HRW futures finished Friday between fractional and 3 3/4 cents lower, while the July contract closed last week 13 3/4 cents higher. Open interest there decreased by 5,690 contracts. MPLS spring wheat posted declines of 1 1/4 to 8 1/2 cents on Friday, with the July contract down 1 1/4 cents for the week.

Adding to the downside pressure, crude oil is down $4.65 on Monday morning after reports that the US and Iran have reached a peace deal over the weekend.

Speculative Positioning and Commitment of Traders Data

Commitment of Traders figures indicated that managed money continued to reduce length in the Chicago wheat market. Outright long positions were cut by 16,852 contracts, while short positions expanded by 4,684 contracts. As a result, the net short position increased by 21,536 contracts to reach 79,407 contracts as of Tuesday.

In KC wheat, speculative funds shifted to a net short stance totaling 4,543 contracts. This change was driven by a bearish move of 18,020 contracts.

Export Sales and New-Crop Outlook

The FAS weekly Export Sales report showed new-crop wheat sales at 4.591 MMT as of June 4 for the start of the 2026/27 marketing year. That volume represents 21.77% of the USDA’s export projection, compared with a 5-year average pace of 23.18%.

European Crop Conditions

In Europe, the French soft wheat crop was reported by FranceAgriMer to be 77% in good or excellent condition, up 1 percentage point from the prior week. The durum wheat crop was rated 64% good/excellent, down 1 percentage point.

Current and Recent Wheat Futures Levels

Recent closes and current early Monday price indications for key wheat futures contracts are shown below:

Disclosure

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.