Mumbai, 27 May (Commoditiescontrol): The wheat market surged this week, reaching new multi-month highs as futures rallied across key trading hubs. In Chicago Board of Trade (CBOT), the July wheat contract rose by 46 cents, a 7.06% increase. Kansas City futures led the bullish trend, climbing 59 ½ cents, or 8.99%. Meanwhile, Minneapolist (MPLS) spring wheat saw a rise of 41 ¼ cents for the July contract, marking a 5.8% increase.
Concerns about Russia’s wheat crop, with private estimates lowered to between 83 and 86 million metric tons (MMT), sparked additional buying interest in the market. This week’s Crop Progress report indicated a slight decline in condition ratings, down 1% to 49% good to excellent, while the Brugler500 index dropped by 1 point to 333. The spring wheat crop showed significant progress, with 79% of the crop planted, which is 14% ahead of the average pace.
Export Sales data revealed net sales of 17,852 metric tons (MT) of wheat for the week ending May 16, as the marketing year approaches its conclusion. However, new crop sales continued to decline, totaling just 224,860 MT this week.
Commitment of Traders data from the Commodity Futures Trading Commission (CFTC) showed that speculative traders in CBOT wheat reduced their net short positions by 3,658 contracts, bringing the total down to 24,593 contracts as of May 21, the smallest net short position since October 2022. In Kansas City futures, traders trimmed their short positions by 503 contracts, resulting in a total of 16,764 contracts by Tuesday.
Overall, the wheat market’s upward trajectory is being driven by concerns over global supply, particularly from Russia, coupled with lower-than-expected crop condition ratings and strong planting progress for spring wheat. The reduction in speculative short positions also reflects a shift in market sentiment, adding further momentum to the rally.
(By Commoditiescontrol Bureau: 09820130172)
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