Wheat Futures Decline as Fund Positioning Lightens Ahead of Holiday Break

Wheat futures across the three primary exchanges posted modest losses on Friday as managed money continued reducing long positions ahead of the upcoming holiday break. Chicago SRW futures traded mostly steady to 1¾ cents lower, with July contracts down 10½ cents for the week. KC HRW futures slipped 1¾ to 5 cents, led by July contracts falling 6 cents since the previous Friday. Minneapolis spring wheat declined up to 6 cents, with July down 4¼ cents for the week. The Chicago Board of Trade will be closed Monday for Memorial Day, with regular trading resuming Tuesday.

Fund positioning data showed continued profit-taking in wheat futures and options. CFTC records as of May 19 indicated managed money reduced their net long position in CBT wheat futures and options by 14,224 contracts, bringing the total to 4,799 contracts. In KC wheat futures and options, speculators cut 7,715 contracts from their net long position, leaving 30,075 contracts.

Export sales data showed mixed signals for U.S. wheat. Old crop wheat commitments reached 25.241 million metric tons, up 16% year-over-year and 102% of the USDA forecast, though slightly below the 103% average pace. New crop sales totaled 2.029 million metric tons, representing a 51.45% decline from the same week last year.

French agricultural officials reported that 80% of the domestic soft wheat crop is in good to excellent condition, unchanged from the previous week. Winter durum wheat fared slightly better at 71% gd/ex. Meanwhile, Argentina reduced its wheat export tax from 7.5% to 5.5% late Thursday.

Price closes: Jul 26 CBOT Wheat $6.46¼ (-1¼¢); Sep 26 CBOT Wheat $6.59¼ (-1¾¢); Jul 26 KCBT Wheat $6.82 (-5¢); Sep 26 KCBT Wheat $6.93¼ (-4½¢); Jul 26 MIAX Wheat $6.90½ (-¾¢); Sep 26 MIAX Wheat $7.10¼ (-¾¢).

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