Wheat futures surged on Friday, with double-digit gains across all three exchanges, driven by reports that Russia restricted export flows through the Don-Azov channel, a route accounting for nearly a quarter of Russia's wheat shipments. Chicago SRW contracts rose 15¼ to 20¾ cents, with September up 40½ cents on the week; KC HRW futures gained 17¾ to 22 cents, and MPLS spring wheat added 11½ to 14¼ cents. Managed money reduced its net short in CBT wheat by 6,705 contracts to 62,325 and increased its net long in KC wheat by 4,845 contracts to 11,764. USDA's Crop Production report trimmed all wheat production by 7 million bushels to 1.536 billion bushels, while the WASDE showed U.S. carryout down 22 million bushels to 722 million and world stocks down 2.78 million metric tons to 272.84 million metric tons. Coceral cut its EU and UK output estimate by 2.9 million metric tons to 140.8 million metric tons, and French wheat crop ratings fell to 65% good/excellent.
Russia restricts export flows via Don-Azov channel, reducing supply; USDA cuts production and carryout.
Russia restricts export flows via Don-Azov channel, reducing supply; USDA cuts production and carryout.