Wheat prices fell noticeably at the start of the week. On the US stock exchanges, SRW, HRW and spring wheat contracts closed with losses of between 8 and 10 US cents per bushel. In Chicago, the price for September futures fell by 8.25 US cents to 548.50 US cents/bushel.
This was due to weak export and harvest figures as well as new trade tensions. According to USDA data, 53% of the US winter wheat harvest was harvested, which is on a par with the previous year but below the long-term average. Stock assessments remained stable, while the condition of the spring sowings deteriorated slightly.
On the export front, 436,628 metric tons of US wheat were shipped in the week ending July 3 - down from the previous week, but up over 27% year-over-year. Mexico and Brazil led the list of buyers. A new letter of intent from Indonesia to purchase a total of 1.8 million tons of US wheat by the end of 2025 could provide support in the medium term. Trump's tariff announcements provided bearish momentum. Indonesian goods are to be subject to a 32% tariff from August, and South Korean and Japanese goods to a 25% tariff.
New announcements also caused movement at international level: France rates its wheat crop as 67% good/excellent and has already threshed 11% of the area. As feared by the bulls, Russia has reduced its export tax on wheat to 0% - a move that is likely to increase global competitive pressure.
On Euronext, September ended €0.25 higher at €196.00/t.
