Wheat Market Continues Downward Trend Amid Ukraine Conflict

The wheat market continued its weakness on Tuesday morning, building on Monday's losses. Chicago SRW contracts fell by 9 1/2 to 14 3/4 cents, while KC HRW futures dropped by 11 to 16 3/4 cents. The MPLS spring wheat price also declined, ranging from 4 1/2 to 11 7/4 cents.

The open interest in these contracts was down significantly on Monday, with Chicago SRW experiencing a loss of 2,024 contracts and KC HRW dropping by 3,406. This suggests that some investors were liquidating their positions.

Meanwhile, the US and Russia held constructive talks on Monday to resolve the conflict in Ukraine peacefully. However, this news had little impact on the wheat market so far.

The US Department of Agriculture's National Agricultural Statistics Service (NASS) reported that 27% of winter wheat was planted as of Sunday, which is 7 percentage points lower than the five-year average planting pace. Additionally, the emergence rate for winter wheat was at 8%. These figures may have contributed to the market's decline.

The weekly Export Inspections report showed a significant drop in wheat shipments, with 310,635 metric tons (11.41 million bushels) exported last week, down 64.44% from the same period last year. The Philippines was the largest recipient of these shipments, followed by Mexico and Nigeria.