Wheat futures are broadly lower on Thursday morning, reversing some of Wednesday's mixed performance which saw winter wheat contracts gain on short covering, evidenced by a nearly 5,000 contract reduction in open interest for CBT soft red wheat. Despite the current downturn, the market is closely watching anticipated wheat export business, projected to be between 350,000 and 600,000 metric tons for the week of October 23, alongside a recent 40,300 MT tender from South Korea, indicating underlying demand.
Wheat futures are broadly lower on Thursday morning, reversing some of Wednesday's mixed performance across all three markets. For instance, Dec 25 CBOT Wheat, which closed up 3 1/4 cents on Wednesday, is currently down 4 3/4 cents, indicating a significant intraday reversal. This follows Wednesday's session where CBT soft red wheat gained 2 to 3 ¼ cents, partly due to short covering as evidenced by a 4,999 contract reduction in open interest. Despite the current price weakness, underlying demand signals persist in the market. The trade anticipates substantial wheat export business for the week of October 23, estimated between 350,000 and 600,000 metric tons. Additionally, South Korean mill importers have tendered for 40,300 metric tons of wheat, signaling continued international interest. The observed short covering on Wednesday suggests a technical bounce that is now unwinding, contributing to the mildly negative sentiment (-0.25 sentiment score) for the current session. However, the presence of significant export demand projections indicates that fundamental support could limit further downside in the medium term. This creates a dynamic where technical selling is juxtaposed against underlying demand.
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mildly negative
Sentiment Score
-0.25
Ticker Sentiment
