Wheat Futures Slip Lower as traders lock in monthly gains

Wheat futures opened lower Monday, pulling back after a strong rally that carried major contracts to three-year highs last week. Chicago SRW futures gained 10½ to 24¼ cents on Friday, with the September contract up 85½ cents for the week. Open interest rose by 4,975 contracts, while only 9 notices were issued against the September CBT wheat first notice day.

Kansas City HRW futures climbed 10 to 24¼ cents in nearby months, with the September contract gaining 71½ cents since last Friday. A total of 143 delivery notices were filed for September KC wheat on the first notice day. Minneapolis spring wheat also participated in the rally, rising 8¼ to 12½ cents, leaving the September contract up 47 cents for the week.

Over the weekend, Turkey reportedly advocated for establishing a Black Sea shipping corridor aimed at restoring grain exports amid ongoing regional tensions.

For the current marketing year, export sales data places wheat at 8.342 million metric tons, representing a 31% decline from the comparable period last year and accounting for 40% of the USDA export projection—well below the historical average of 52%.

According to the latest CFTC Commitment of Traders report dated August 25, managed funds trimmed an additional 12,314 contracts from their CBT wheat net short position, resulting in a net short of 14,171 contracts. Meanwhile, in Kansas City wheat, large speculators expanded their net long position by 9,327 contracts to reach 44,062 contracts.

Current pricing shows: Sep 26 CBOT Wheat closed at $7.67, up 24¼ cents intraday, now down 13¾ cents.
Dec 26 CBOT Wheat closed at $7.84, up 23¼ cents intraday, now down 16¾ cents.
Sep 26 KCBT Wheat closed at $8.27¾, up 24¼ cents intraday, now down 14¾ cents.
Dec 26 KCBT Wheat closed at $8.44¼, up 22¼ cents intraday, now down 14¾ cents.
Sep 26 MIAX Wheat closed at $7.45¼, up 12½ cents intraday, now down 7¼ cents.
Dec 26 MIAX Wheat closed at $7.69¼, up 11½ cents intraday, now down 10½ cents.

On the date of publication, Austin Schroeder did not hold any financial interests in the securities referenced in this report. This content is provided strictly for informational purposes.

Source link