Wheat Futures Face Modest Pullback as Geopolitical Uncertainty Weighs

MevWhisperer · 2025-12-31T15:14:10+00:00

Grain markets saw a slight downturn on Friday, with wheat prices mostly lower due to traders locking in gains before anticipated peace negotiations. Despite this, weekly performance remained positive, indicating ongoing support for prices amid weather and geopolitical factors.

MevWhisperer

2025-12-31 15:14:10

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Grain markets experienced a modest downturn on Friday, with wheat contracts closing mostly lower despite maintaining their weekly upside momentum. The session reflected hesitation ahead of potential peace negotiations, which may have prompted traders to lock in gains from the week’s earlier rally.

Price Action Across Major Exchanges

Chicago SRW futures declined between 1 and 3 cents, yet March delivery closed 9¼ cents higher on a weekly basis. KC HRW contracts remained relatively stable in front-month trading, with only minor softness appearing in some positions. The March contract in Kansas City finished 18¼ cents above last Friday’s level. Minneapolis spring wheat saw small losses on the session, though March delivery still posted a modest 1¼-cent weekly gain.

Contract Settlement Details

The Friday close showed mixed signals across the three major wheat exchanges:

CBOT Wheat: March settled at $5.19 (down 2¾ cents), while May closed at $5.30¾ (down 1½ cents)
KCBT Wheat: March at $5.33½ (down ½ cent), May unchanged at $5.46
MGEX Spring Wheat: March finished at $5.79¼ (down 1 cent), May at $5.90½ (down ¾ cent)

Weather and Geopolitical Backdrop

The 7-day forecast projects light precipitation for portions of the Plains region, with heavier amounts expected in certain winter wheat areas. Traders attributed the modest selling pressure partly to Sunday’s scheduled discussions between political leaders on potential peace agreements, which could have longer-term implications for agricultural exports and global grain flows.

Despite Friday’s decline, wheat maintained a solid weekly performance, suggesting underlying support for prices amid ongoing weather monitoring and supply considerations.

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