Wheat Markets Face Pressure as Week Winds Down

The wheat trading week concluded with bearish momentum across major futures contracts. Chicago SRW wheat declined sharply, with most contracts showing losses of 4-5 cents, while March delivery dropped 6½ cents over the week’s trading. Kansas City HRW wheat experienced similar pressure, losing 4-5 cents on Friday alone, with March contracts down 13¼ cents since the previous week’s close. Minneapolis spring wheat displayed relative stability, with March futures posting modest gains of 2¾ cents on the weekly timeframe.

Managed Funds Reduce Bearish Bets

Recent positioning data provides insight into the market’s evolving sentiment. As of November 18, Commitment of Traders reports revealed that speculative funds trimmed their bearish exposure in Chicago wheat futures by 10,070 contracts, bringing net short positions to 48,691 contracts. A comparable pullback occurred in Kansas City wheat, where managed money reduced short positions by 13,278 contracts to reach 19,939 contracts. This shift in fund positioning suggests traders are reassessing bearish outlooks amid ongoing market volatility.

Emerging Demand and Export Expectations

International buying activity provided a counterweight to domestic selling pressure. A South Korean buyer completed a private transaction acquiring 65,000 MT of wheat, signaling continued overseas demand despite softer pricing. Export sales data for the week ending November 20 will be released Monday, with market participants expecting sales volumes between 300,000-750,000 MT, indicating substantial global interest in wheat supplies.

Contract Settlements and Price Levels

Dec 25 CBOT Wheat closed unchanged at $5.34½, while Mar 26 CBOT Wheat settled at $5.29¼, declining 4¼ cents. Dec 25 KCBT Wheat finished at $4.98¾, off 16¾ cents, with Mar 26 KCBT Wheat at $5.18, down 4¼ cents. Minneapolis wheat showed less volatility, with Dec 25 MGEX Wheat unchanged at $5.82½ and Mar 26 MGEX Wheat closing at $5.76¾, down just ½ cent.