The wheat markets reversed those gains in the next session as the Ukraine stated that their wheat exports were moving at a normal pace despite the seizure of the three vessels. SovEcon expects Russia to export 34.7 million metric tons of wheat for 2018-19. The U.S. Department of Agriculture is currently estimating 35 million metric tons. Reuters reported that the European Union crop monitoring firm MARS stated winter crops in the northern and western regions of Europe are off to a good start with favorable conditions.
Winter wheat conditions declined 1 percent to 55 percent good to excellent, 32 percent fair and 13 percent poor to very poor. Trade was expecting unchanged conditions. Emergence was 86 percent compared to 92 percent for the five-year average. Winter wheat planted was at 95 percent compared to 99 percent for the five-year average.
Weekly export inspections were 252,000 metric tons (9.3 million bushels) which was below expectations of 350,000 to 600,000 metric tons. Inspections are running 370 million bushels, 19 percent less than last year. Weekly exports sales totaled 13.9 million bushels. Total commitments of 547 million bushels are down 13 percent from a year ago. Weekly shipments of 9.2 million bushels put total shipments down 18 percent from the previous year. There was an announcement of a 120,000 metric tons sale of U.S. soft red wheat to Egypt which supported the Chicago market. Algeria purchased 600,000 metric tons of wheat from France and Argentina. The lack of U.S. business weighed heavy on traders this week.
Commodity Futures Trading Commission data showed the managed funds increasing their all wheat net short position by 11,000 contracts to 38,000 short. CFTC data on deliverable grain shows a much lower total versus last year in the Chicago and Minneapolis contracts but a higher total for the