Wheat futures on the Chicago Board of Trade (CBOT) declined on Tuesday as traders took profits following a three-day rally that pushed prices to multi-week highs.
December wheat futures fell 1.7% to $5.92 per bushel by mid-morning in New York, paring gains from the prior session where prices reached their highest level since mid-August. The retreat came as market participants booked profits after the recent surge, which was driven by concerns over dry conditions in key U.S. growing regions and reduced export competition from Russia.
Analysts noted that technical resistance around the $6.00 per bushel level may have capped further upside, prompting some investors to reduce long positions. "The market was due for a pullback after the sharp advance," said a senior analyst at a major brokerage. "Profit-taking is natural, but the underlying fundamentals remain supportive."
Export data released Monday showed U.S. wheat shipments rose 5% week-over-week, though total commitments for the 2024/25 marketing year remain below last year’s pace. Meanwhile, dry weather in the U.S. Plains continues to raise concerns about winter wheat planting conditions, though recent rainfall provided some relief.
The decline in wheat futures mirrored broader grain market weakness, with corn and soybean contracts also trading lower on Tuesday. Traders will monitor upcoming USDA reports for further direction, particularly the weekly crop progress data due later in the week.
