The wheat complex was in rally mode on Friday, closing with double digit strength across the three exchanges. Chicago SRW contracts was 15 ¼ to 20 ¾ cents in the green on the day, with nearby September up 40 ½ cents on the week. KC HRW futures were up 17 ¾ to 22 cents at the close, with September rallying 37 3/4 cents this week. MPLS spring wheat was 11 ½ to 14 ¼ cents higher on the session, with September up 33 ¾ cents from last week’s close.
Wheat gained steam on Friday after reports that Russia is restricted export flows through Don-Azov channel. The Sea of Azov accounts for nearly a quarter of Russia’s wheat shipments exit the region.
Weekly Commitment of Traders data indicated managed money in CBT wheat futures and options backing off their net short by 6,705 contracts in the week ending on July 7, taking it to 62,325 contracts. In KC wheat, they added another 4,845 contracts to their net long, now at 11,764 contracts.
Crop Production data was updated this morning with all wheat production down just 7 mbu to 1.536 bbu. All winter wheat production was below estimates at 990 bbu, a 40 mbu drop from last month, with spring wheat at 475 mbu and larger than expected. In the WASDE, traders saw US carryout to be down 22 mbu to 722 mbu. That was partially due to pricution, with carryover dropped 15 mbu from 2025/26.
USDA’s WASDE report showed world stocks down 2.78 MMT to 272.84 MMT. That was partially due to the US, with Argentina down 0.5 MMT, Canada dropping 0.42 MMT, and the EU 0.3 MMT lower.
Coceral trimmed their EU and UK output by 2.9 MMT to 140.8 MMT. The French wheat crop ratings were down another 3 percentage points to 65% gd/ex this week according to the FranceAgriMer, as harvest was listed at 29% complete.
Sep 26 CBOT Wheat closed at $6.40 1/4, up 20 1/2 cents,
Dec 26 CBOT Wheat closed at $6.54 1/2, up 20 1/2 cents,
Sep 26 KCBT Wheat closed at $6.76 1/4, up 22 cents,
Dec 26 KCBT Wheat closed at $6.90 1/4, up 22 cents,
Sep 26 MIAX Wheat closed at $6.53 1/2, up 13 1/2 cents,
Dec 26 MIAX Wheat closed at $6.74 1/4, up 14 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.
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