Wheat futures see decrease ahead of July

Wheat futures for July-24 stood down 1.7% in Chicago, recouping some losses after finding support around the US$5.40/Bu mark.

Even so, the contract remained within US$0.06/Bu of its contract low set in early March, having retreated by nearly US$1.80/Bu from a high set late in May.

The decline followed the release overnight by the USDA of data showing that the condition of the yet-to-be harvested US winter wheat crop has improved by 3 points to 52% which is considered good or excellent, surprising traders, who had expected an unchanged reading.

Extra pressure was added by a weak performance by corn and soybeans, as funds used the prospect of the much-anticipated USDA data on US crop plantings as a cause to pile on extra short positions.

The report has been expected to show that farmers, who enjoyed a pretty open sowing window, planted more of both crops that was initially expected.

Chicago corn futures for July-24 shed 1.9% to hit four-month lows, while soybeans for July-24 dipped by 1.3%, before again bumping into resistance around the US$11.55 – US$11.60/Bu level.

Wheat prices in Europe showed more resilience, offered some support by signs of demand from major import customers Egypt and Algeria, both of which issued tenders.

Nonetheless, this support was marred by the return of Russia to competitiveness, with offers of US$227/t FOB to the tender by Egypt’s Gasc grain authority.

This was well down on offers pitched at US$265/t FOB at Gasc’s previous tender, and undercut Romanian and French cargoes.

Paris milling wheat futures for September-24 settled 0.6% lower, but remained above the much-watched €220/t mark. London feed wheat futures for November-24 settled down 1.7%.

Tags: winter crop, Grains, corn, prices, soybeans, US, wheat, futures