Grain Market Stability Continues on Wednesday's Opening
The wheat futures markets exhibited a mixed trend on Tuesday, with gains on the Kansas City Board of Trade (KCBT) and Chicago Board of Trade (CBOT) offset by a slight decline on the Minneapolis Grain Exchange (MGEX).
CBOT wheat futures experienced small gains, with September 2025 contracts closing at approximately $5.08 1/4 per bushel, up 1/4 cent. The December 2025 contracts were slightly higher, closing at $5.29 1/4, up 3/4 cent. However, a report indicated a slight drop in CBOT soft red winter (SRW) wheat futures by 2 cents to $5.15/bu.
KCBT wheat futures led the gains, with September 2025 contracts up 6 to 7 cents to $5.11 1/2 per bushel, and December 2025 contracts up about 6 3/4 cents at $5.32. Another report noted December KCBT wheat around $5.40 1/4, up 10 cents, showing continuing strength there.
On the other hand, MGEX spring wheat futures declined slightly, with September 2025 contracts down about 1 1/2 cents to $5.69 3/4 and December 2025 contracts down 1/4 cent to $5.92 1/4.
Early on Wednesday, wheat showed mixed trade, with KCBT and MGEX remaining unchanged, while CBOT wheat was down 8 1/2 cents at $5.28 1/2. CBT futures were 8 to 10 cents lower in the front months.
In the export market, USDA weekly export sales reached a 7-week high at approximately 569,561 metric tons for the week ending early August 2025, up nearly 30% from the previous week and 63% from the prior year. Key buyers included Mexico and South Korea, with 127,600 MT and 84,400 MT respectively.
International buyers continue to show interest, with Algeria's tender estimates now ranging between 360,000 and 480,000 MT, Saudi Arabia tendering for 595,000 MT, and Taiwan requesting 102,450 MT of U.S. wheat. Japan’s tender includes 123,979 MT from the U.S., Australia, and Canada combined. Another South Korean importer secured 60,000 MT of wheat in a private deal overnight, indicating ongoing demand.
Preliminary open interest data suggested net new selling, up 6,867 contracts. MPLS spring wheat was down 2 to 4 cents on the day. The European Commission estimates the 2025/26 soft wheat exports since July 1 at 1.11 MMT as of 8/3, compared to the 2.64 MMT in the same period last year.
In summary, the wheat futures markets are showing moderate mixed but generally firm trends, with strong gains on KCBT, slight increases on CBOT, and minor declines on MGEX. Export demand remains robust with significant weekly wheat sales and multiple international tenders continuing to support the trade.
In the world of finance, investors might consider diversifying their portfolios by investing in real-estate, given the moderate mixed but generally firm trends being witnessed in the wheat futures market. A potential opportunity could arise from the strong gains exhibited by KCBT wheat futures and the increasing export demand for US wheat.
