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Wheat Futures Decline as Production Data Approaches

Wheat futures continue to experience downward pressure. As traders prepare for upcoming production reports and export sales data, price movements remain cautious. Investors should monitor these developments closely to anticipate market shifts.

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AI Rating:   5

**Wheat Futures Performance**: Recent trading sessions have shown a decline in wheat futures, specifically Chicago SRW, Kansas City HRW, and Minneapolis spring wheat futures. This trend can be indicative of both supply and demand dynamics affecting the wheat market.

**Next Week's Weather**: The forecast for the week suggests drier conditions across significant wheat-producing areas, including Texas and the Dakotas. Drier weather may affect wheat yields and, subsequently, the market. If the drought persists, it could lead to lower production levels and higher prices in the long term, as the supply may be constrained.

**Export Sales Report**: The forthcoming EXPORT SALES report will provide valuable insights into old and new crop wheat bookings. Expected sales are forecasted to range widely: net reductions for old crops between 100,000 MT and 150,000 MT, while new crop sales are anticipated between 200,000 MT and 400,000 MT. Lower than expected sales could put further pressure on wheat futures.

**Upcoming Crop Production Data**: Production estimates are critical for investors. The upcoming Crop Production report will announce total wheat production anticipated at 1.885 billion bushels. With granular detail on winter wheat, including HRW, SRW, and white winter, any significant deviation from these estimates could lead to volatility in the futures market.

Overall, the bearish trend in wheat futures will be influenced heavily by weather conditions and forthcoming reports. Investors should remain cautious, prepared for possible volatility following the announcement of the production report and export sales in the coming days.

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