Wheat Market Slumps Amid Black Sea Uncertainty

The wheat complex is facing pressure due to money flowing out of the market ahead of the weekend following Black Sea news. The Chicago SRW contracts are down by $0.18-$0.20 at midday, while KC HRW futures have fallen by $0.17-$0.18 on the day, and MPLS spring wheat is back by $0.17-$0.18.

Ukraine's proposal to keep vessels moving in the Black Sea has not yet led to a formal agreement with Russia. Export Sales data from FAS shows that new crop accumulated sales are at 6.68 MMT, down 26% from last year and accounting for only 32% of the USDA export projection, which is below the 37% five-year average.

The annual spring wheat tour results were released on Thursday, with an estimated average yield of 48 bushels per acre (bpa), slightly lower than last year but above the 45.8 bpa average from the previous five years.