In Chicago, SWR wheat was up 2.75 US cents for July at 618.75 US cents/bushel. In Kansas City, on the other hand, HRW wheat came under pressure with a drop of 6.75 US cents for July to 640.75 US cents/bushel. Spring wheat in Minneapolis, on the other hand, was firmer and gained several cents.
From a trader's perspective, the latest state data from Kansas provided a bullish signal for the market as a whole, even if it weighed on the HRW contract in the short term. The proportion of good/excellent stocks fell by 6 percentage points to 40%, signaling growing risks for the harvest. At the same time, weather forecasts are shifting in favor of additional precipitation in the Plains, which strengthens the bearish side and could provide relief, especially in the West.
On the demand side, export figures are robust. At 364,219 tons, weekly shipments were significantly higher than the previous week and the previous year. Japan, Nigeria and Mexico in particular were stable buyers. Since the start of the marketing year, exports have totaled 20.295 million tonnes and are therefore well above the previous year's level.
The market is now turning its attention to the upcoming USDA data. Wheat acreage is expected to fall to 44.79 million acres, while stocks are expected to be higher than the previous year. This constellation harbors short-term tension between bullish acreage impulses and potentially dampening inventory figures. On Euronext, May trading rose by e0.50 to €203.75/t.
