Key Moments
- Wheat futures were trading 15 to 22 cents higher across major exchanges early Wednesday following Tuesday’s advance.
- Russian attacks on Ukrainian ports and US strikes on Iran, which also damaged a wheat storage facility, coincided with continued limits on exports through the Kerch Strait.
- NASS reported 67% of the US winter wheat crop harvested and 72% of the spring wheat crop headed, with mixed condition ratings across key producing states.
Wheat Futures Build on Tuesday Strength
Wheat markets were trading higher by 15 to 22 cents across the three major exchanges early on Wednesday, extending the prior session’s broad-based gains. On Tuesday, Chicago SRW futures settled between 4 1/4 and 9 3/4 cents higher, supported by an increase of 5,032 contracts in open interest that pointed to fresh buying.
KC HRW contracts closed 7 1/2 to 11 3/4 cents higher on Tuesday, with open interest rising by 1,056 contracts. MPLS spring wheat futures ended the session 4 to 5 3/4 cents higher, completing Tuesday’s trade as July futures reached their expiration.
Geopolitical Risks in the Black Sea and Middle East
Export flows through Russia’s Kerch Strait remained constrained following last week’s reported restrictions. In overnight developments, Russia carried out strikes on several port facilities in Odesa, Ukraine, in response to recent Ukrainian attacks on Russian tankers in the Sea of Azov. Separately, US strikes on Iran overnight also damaged a wheat storage facility.
US Crop Progress and Condition Updates
According to the latest NASS Crop Progress report, 67% of the US winter wheat crop had been harvested by Sunday, running 6% ahead of the typical pace. The spring wheat crop was reported as 72% headed, matching the 5-year average rate.
Spring wheat conditions were rated 58% good to excellent, an increase of 1%, even as the Brugler500 index declined by 3 points to 351. Condition ratings in Montana fell by 18 points, while Idaho and South Dakota each slipped by 7 points. Improvement was recorded in Minnesota, up 8 points, and North Dakota, up 6 points.
Global Trade Flows: Taiwan and EU Activity
Overnight, importers in Taiwan booked purchases totaling 98,150 MT of US wheat. In the European Union, wheat exports during the first 12 days of July reached 214,904 MT based on EU Commission data, down from 260,897 MT over the same period last year.
Futures Market Snapshot
Key wheat futures contracts closed higher on Tuesday and were trading sharply above those levels early on Wednesday. The table below summarizes Tuesday’s settlement prices, daily changes, and current price indications.
| Contract | Tuesday Close | Change on Day | Current Level | Current Change vs Close |
|---|---|---|---|---|
| Sep 26 CBOT Wheat | $6.45 | up 9 3/4 cents | up 18 1/4 cents | from Tuesday close |
| Dec 26 CBOT Wheat | $6.59 3/4 | up 9 1/4 cents | up 17 1/2 cents | from Tuesday close |
| Sep 26 KCBT Wheat | $6.78 | up 11 3/4 cents | up 22 1/2 cents | from Tuesday close |
| Dec 26 KCBT Wheat | $6.92 1/2 | up 11 1/4 cents | up 21 cents | from Tuesday close |
| Sep 26 MIAX Wheat | $6.58 | up 4 3/4 cents | up 15 1/2 cents | from Tuesday close |
| Dec 26 MIAX Wheat | $6.78 1/4 | up 4 cents | up 16 1/4 cents | from Tuesday close |
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.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
