Mumbai, 15 Jun (Commoditiescontrol): The wheat market experienced significant declines this week, with futures across all three major exchanges in a downward spiral. Leading the drop, Kansas City's July contract fell by 38 ¼ cents (5.75%), while MPLS futures decreased by 39 cents (5.62%). Chicago wheat also saw a notable decrease, with the July contract dropping 14 ¾ cents (2.35%).
The U.S. Department of Agriculture (USDA) made no changes to the old crop U.S. balance sheet in its Wednesday report, pending the June 28 stocks report. However, the new crop saw several adjustments. Production was increased by 17 million bushels (mbu), primarily due to an increase in Hard Red Winter (HRW) wheat. At the same time, a 25 mbu rise in exports resulted in a net tightening of stocks by 8 mbu, bringing the total to 758 mbu. This export hike was driven mainly by a 5 million metric ton (MMT) reduction in the Russian crop, attributed to recent adverse weather conditions.
Weekly Crop Progress data indicated that 12% of the wheat harvest was complete as of last Sunday. However, condition ratings dropped by 2% this week to 47% good/excellent (gd/ex), with the Brugler500 index decreasing by 3 points to 330. The spring wheat crop is nearly fully planted, at 98%.
The Export Sales report revealed sales of 302,677 metric tons (MT) for the 2024/25 marketing year during the week of June 6. Meanwhile, the weekly Commitment of Traders report from the Commodity Futures Trading Commission (CFTC) showed speculative traders adding 13,432 contracts to their net short position in Chicago wheat, totaling 45,116 contracts by June 11. In Kansas City futures, an additional 2,870 contracts were added to the short position, bringing the total to 16,408 contracts as of Tuesday.
As the market reacts to these developments, the weaker trend in wheat futures reflects a combination of increased production, shifting export dynamics, and ongoing weather concerns. Traders and farmers alike are closely monitoring the situation, particularly the upcoming June 28 stocks report, which could further influence market directions.
(By Commoditiescontrol Bureau: 09820130172)
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