Key Moments
- Wheat futures were under pressure in early Tuesday trading, adding to Monday’s declines across the wheat complex.
- US winter wheat harvest reached 81% completion by Sunday, while spring wheat conditions held at 53% good/excellent.
- Weekly wheat export inspections climbed to 394,785 MT, up 71.82% from the prior week, though marketing year shipments remained 23.21% below last year.
Early Tuesday Trade: Continued Weakness in Wheat
Wheat futures were weaker in early Tuesday action, trading between 3 and 9 cents lower. The move followed a broad selloff across the commodity space on Monday that also pulled the wheat complex sharply lower.
Chicago SRW wheat futures finished Monday with declines ranging from 11 to 18 cents. Open interest in that market fell by 866 contracts. KC HRW wheat futures also retreated, closing the session with losses between 10 and 16 1/4 cents, while open interest in that market increased by 4,351 contracts. MPLS spring wheat contracts ended Monday between 1 1/2 and 9 1/4 cents lower.
US Crop Progress and Condition
Weekly NASS Crop Progress data indicated that 81% of the US winter wheat crop had been harvested by Sunday, running 2% ahead of the typical pace. In the spring wheat segment, 92% of the crop was reported as headed, which was 1% behind the 5-year average, with 2% of the crop already harvested.
Spring wheat condition ratings were unchanged at 53% good/excellent. The Brugler500 index for spring wheat slipped another 3 points to 342.
Export Inspections: Weekly Shipments Rebound
Monday morning’s Export Inspections report showed wheat export inspections of 394,785 MT (14.51 mbu) for the week of 7/23. That volume was 71.82% higher than the previous week and 36.01% above the same week a year earlier.
Bangladesh was the top destination during the week, taking 58,341 MT. Shipments to Japan reached 56,444 MT, while exports to Mexico totaled 54,407 MT. Cumulative shipments for the current marketing year stood at 2.543 MMT (93.4 mbu), which was 23.21% below the corresponding period last year.
International Supply: Russian Export Outlook
SovEcon estimated Russian wheat exports at 44.6 MMT, which represented a reduction of 1.9 MMT from its previous projection.
Futures Market Snapshot
Key wheat futures contracts closed Monday lower and continued to trade in negative territory in early Tuesday dealings. The latest levels are summarized below.
| Contract | Monday Close | Monday Change | Current Change (Tuesday AM) |
|---|---|---|---|
| Sep 26 CBOT Wheat | $6.60 | down 18 cents | currently down 8 cents |
| Dec 26 CBOT Wheat | $6.77 1/2 | down 18 cents | currently down 7 3/4 cents |
| Sep 26 KCBT Wheat | $7.29 | down 16 1/4 cents | currently down 4 cents |
| Dec 26 KCBT Wheat | $7.45 1/2 | down 16 cents | currently down 1 cent |
| Sep 26 MIAX Wheat | $7.06 1/4 | down 8 cents | currently down 8 1/2 cents |
| Dec 26 MIAX Wheat | $7.29 1/2 | down 9 1/4 cents | currently down 7 cents |
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.
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