Wheat Extends Weakness on Black Sea Pressure

Wheat futures are continuing to slide lower so far on Wednesday morning. The complex was under pressure on Tuesday. Chicago SRW futures were down 5 to 6 cents in the front months. Tuesday’s preliminary open interest data showed an increase of 1,665 contracts. Kansas City HRW contracts closed 8 to 9 cents in the red on the day. Preliminary open interest was up 2,695 contracts. MPLS spring wheat was 3 to 5 cents lower at the close. 

In fresh rounds of negotiations trying to reach a ceasefire, Russia and Ukraine have both agreed to ensure safe navigation in the Black Sea, similar to the previous Black Sea Grain Initiative, and to ban attacks on energy facilities. 

SovEcon trimmed their 2024/25 Russian wheat export projection by 1.5 MMT to 40.7 MMT. They also increased their 2025/26 export forecast by 0.2 to 39.1 MMT. EU soft wheat export since July 1 have totaled 15.46 MMT, vs. the 23.75 MMT in the same period last year according to European Commission data.

Japan is tendering for 119,847 MT of wheat in their weekly ministry of ag tender, due on Thursday and 59,751 MT US specific.

May 25 CBOT Wheat  closed at $5.43 1/4, down 5 cents, currently down 2 3/4 cents

Jul 25 CBOT Wheat  closed at $5.59 3/4, down 5 1/2 cents, currently down 3 cents

May 25 KCBT Wheat  closed at $5.69 1/4, down 8 3/4 cents, currently down 2 ¼ cents

Jul 25 KCBT Wheat  closed at $5.84 3/4, down 8 1/4 cents, currently down 2 ½ cents

May 25 MGEX Wheat  closed at $5.88 1/2, down 3 3/4 cents, currently down ¾ cent

Jul 25 MGEX Wheat  closed at $6.05, down 4 1/4 cents, currently down 1 cent