Wheat futures are fading at midday, down 4 to 5 cents but holding on to most of the Wednesday rally. The wheat complex was in rally mode on Wednesday, with potential restrictions on Russian exports out of the Black Sea. Chicago SRW contracts were mostly 26 to 32 1/2 cents in the green at the close. Open interest was up 8,0880 contracts, suggesting new buying interest. KC HRW futures were up 23 ¾ to 42 cents, after hitting the 45 cent daily limit during the session. Open interest was up 6,479 contracts. MPLS spring wheat was 22 to 27 1/4 cents higher on the day.

Russia and Ukraine continue to trade punches in the Black Sea and the Sea of Azov, with Russia striking a vessel and port infrastructure in Odesa (Ukraine’s main export port). Chornomorsk in particular was seeing some grain handling restrictions. Ukraine struck Russian oil refineries and claimed hits on at least 5 oil tankers.

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The weekly USDA Export Sales report was released this morning, with a total of just 235,102 MT of wheat was sold in the week ending July 9. Pre-report estimate ran between 250,000 and 600,000 MT for wheat sales. That was the lowest for the new marketing year to date, and less than half of the same week last year.

The France AgriMer estimates French wheat exports outside the EU will be 7 MMT, down 0.4 MMT from their previous number, with 7.4 MMT inside the EU, a 0.5 MMT reduction from previous. French soft wheat stocks are seen at 3.65 MMT, up 0.27 MMT from their prior estimate. The International Grains Council (IGC) left its world wheat production estimate UNCH at 821 MMT on Thursday.

Sep 26 CBOT Wheat is at $6.72 1/4, down 5 1/4 cents,

Dec 26 CBOT Wheat is at $6.88 1/4, down 3 3/4 cents,

Sep 26 KCBT Wheat is at $7.13 1/2, down 6 1/2 cents,

Dec 26 KCBT Wheat is at $7.27 3/4, down 5 1/2 cents,

Sep 26 MGEX Wheat is at $6.79, down 4 1/4 cents,

Dec 26 MGEX Wheat is at $7.02 1/2, down 3 cents,

On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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