Wheat Market Shows Midday Strength Despite Decline in Shipments

The wheat market is showing strength in midday trading on Monday, with Chicago SRW contracts up 12 to 13 cents and KC HRW futures 11 to 12 cents higher. MPLS spring wheat has also gained ground, increasing by 8 to 9 cents.

The weekly Export Inspections report showed a decline in wheat shipments, with 335,313 MT (12.32 mbu) shipped in the week of July 30. This is a 19.68% drop from the previous week and less than half of the same period last year.

South Korea was the largest recipient of wheat shipments at 90,198 MT, followed by Thailand with 68,166 MT and the Philippines with 57,815 MT. Shipments for the marketing year are now at 2.907 MMT (106.8 mbu) of wheat, a 27.36% decrease compared to the same period last year.

The Commitment of Traders data revealed that managed money in CBT wheat futures and options reduced their net short position by 12,469 contracts, leaving them with just 6,880 contracts. In KC wheat, they added 3,289 contracts to their net long, now totaling 33,233 contracts.