Wheat futures struggled on Friday, diverging from the upward momentum seen in corn and soybeans. Chicago SRW futures fell by 7 to 8 cents, with July contracts down 21 ¼ cents for the week. Kansas City HRW and Minneapolis spring wheat futures also faced losses, reflecting a broader weakness in the wheat market as speculative funds reduced their net short positions in CBT wheat but extended their record shorts in KC wheat.
This downturn is significant as it contrasts with the robust export commitments, which have risen 14% year-over-year to 21.631 million metric tons, though still fall short of the USDA’s forecast. The upcoming USDA WASDE report is expected to provide fresh insights into global stocks, with analysts predicting old crop world stocks at 261 million metric tons.
Market participants should closely monitor the upcoming WASDE report for shifts in supply forecasts, as this could influence trading strategies in the wheat sector amid current price pressures.
Source: nasdaq.com