Chicago Board of Trade wheat futures ended lower on Monday, with initial support from firmer crude oil prices losing momentum and market attention refocusing on broad supply dynamics and lackluster demand for U.S. shipments.
Prices felt additional downward pressure from spillover weakness in corn and soybeans, and from harvest hedging as U.S. producers begin to collect their winter wheat. Traders noted that upcoming Northern Hemisphere harvests are weighing on prices; despite severe drought damage to the U.S. crop, many other countries appear on track for satisfactory harvests this season.
The U.S. Department of Agriculture was scheduled to release updated crop progress and condition data later on Monday. Analysts polled by Reuters were, on average, expecting the USDA to rate just 27% of the U.S. winter wheat crop in good-to-excellent condition, with harvesting estimated to be 4% complete.
On the CBOT, July soft red winter wheat (WN26) reached its weakest level since May 7 before settling 1-3/4 cents lower at $6.08-3/4 per bushel.
The price move reflected a combination of factors highlighted by traders: fading influence from crude oil gains, cross-commodity weakness in corn and soybeans, and the initiating of harvest-related selling by U.S. growers. Market participants continued to watch forthcoming USDA data for confirmation of crop condition and harvest progress figures that could influence near-term price direction.
Key details:
- CBOT futures closed lower on Monday after early support from higher crude oil faded.
- Spillover from lower corn and soybeans and harvest hedging added pressure.
- The USDA update on crop progress and conditions was due later the same day; analysts expected 27% of the U.S. winter crop rated good-to-excellent and 4% harvested.
- July soft red winter wheat (WN26) hit its lowest level since May 7 and finished down 1-3/4 cents at $6.08-3/4 per bushel.
Market participants remain attentive to both the USDA's condition and progress figures and to developments in competing commodity markets, which can quickly alter risk sentiment and trading flows in wheat.