Wheat Slides as Spring Planting Jumps to 17% of Crop

Wheat prices moved lower across all three U.S. exchanges, and the softness carried into the next session, Nasdaq reported, citing Barchart analyst Austin Schroeder. Front-month Chicago soft red winter futures closed down 10 to 11 cents, the steepest drop of the three contracts.

Kansas City hard red winter contracts lost 6 to 7 cents, while Minneapolis spring wheat fell 5 to 7 cents in the front months. On the next morning, May 25 CBOT wheat was down another 5 cents, Jul 25 CBOT wheat was 4 3/4 cents lower, May 25 KCBT was off 3/4 cent and Jul 25 KCBT had shed 1 3/4 cents. Minneapolis held steadier, with May 25 MGEX futures up 1/2 cent.

Also read: Wheat Futures Slip Early Friday After Broad Thursday Rally

Key facts

• Chicago SRW futures closed 10 to 11 cents lower in the front months on Monday, and preliminary open interest rose 1,565 contracts.
• Kansas City HRW contracts were down 6 to 7 cents, with preliminary open interest falling 2,318 contracts on the session.
• Spring wheat planting reached 17%, compared with a 12% five-year average, while emergence stood at 2%, in line with normal.
• Winter wheat was 15% headed as of April 20, two percentage points ahead of the usual pace, and good/excellent ratings fell 2% to 45%.
• USDA’s Export Inspections report tallied 510,250 MT (18.75 mbu) of wheat shipped in the week ended April 17.

Rains expected across the Plains

The crop report also showed the winter wheat condition index slipping, with the Brugler500 down 4 points to 325. The trade is looking at a week of precipitation across much of the Plains states, stretching from Texas to South Dakota. Planting had already run ahead of normal. Marketing year shipments reached 18.81 MMT (691.24 mbu), up 14.43% from the same week last year. Weekly export inspections were down 16.55% from the prior week but 13.31% above the same week in 2024. Vietnam led destinations at 133,547 MT, followed by Mexico at 89,273 MT and the Philippines at 64,683 MT.

Minneapolis spring wheat was the softest of the three exchanges on Monday, losing 5 to 7 cents in the front months. On the next morning, May 25 MGEX wheat was up 1/2 cent, while Jul 25 MGEX was down 3/4 cent. July Soft Red Winter wheat prices may have found a bottom, according to a related Barchart analysis linked from the report.

Also read: Cotton Futures End Monday Higher as USDA Trims Crop Condition Ratings

Why it matters

Wheat is a staple input for millers, bakers, livestock feeders and food manufacturers, and the direction of futures prices feeds through to flour, bread and feed costs. Conditions this spring have tracked ahead of schedule, which can weigh on prices if the crop stays healthy, while a ratings decline to 45% good/excellent leaves less cushion if weather turns dry. The market is not trading in isolation: corn and soybean futures have also moved on planting progress and export demand, and the export pace remains ahead of last year, which has supported the demand side of the balance sheet.

What to watch

Weather across the Plains states from Texas to South Dakota over the next week, and the USDA’s Export Inspections report for the following week, are the near-term items that will set the direction for wheat futures. Traders will also watch whether the spring wheat crop progresses on or ahead of the five-year average pace.

Written by

Benjamin

Benjamin Carter covers business, finance, and the stock market for StockPil, focusing on the trends and data that matter to everyday investors.

Source: Nasdaq