Wheat Prices Rebound as Export Sales Show Improvement

USDA Data Points to Slight Increase in Wheat Bookings

The wheat market experienced a recovery on Friday after enduring a week of losses, maintaining levels above August’s lows. Chicago SRW futures increased by 5 to 8 1/2 cents, even though December futures dropped 6.3% over the week. Similarly, KC HRW contracts noted gains of 4 1/2 to 8 1/2 cents for the day, while December futures fell by 4.3% since the previous Friday. Additionally, MPLS spring wheat rose 3 to 5 3/4 cents during the session, with December contracts down 4.27% over the week. 

The USDA’s weekly Export Sales report indicated that total wheat bookings improved slightly, reaching 380,056 MT for the week ending November 7. This figure fell within the expected range of 250,000 to 550,000 MT and marked a 1.42% increase from the previous week. Notably, South Korea purchased 89,100 T, while Japan bought 70,600 MT. 

According to the Commitment of Traders data, CBT wheat speculators increased their net short position by 14,526 contracts, totaling 45,307 contracts as of the last Tuesday. In the KC wheat market, managed funds also expanded their net short position, adding 11,018 contracts for a total of 25,098 contracts. 

Overnight developments in French milling futures provided additional support for US markets. As per FranceAgriMer, the French soft wheat crop is reported to be 78% planted, which is 5 percentage points behind the normal pace for this time of year. 

Dec 24 CBOT Wheat closed at $5.36 1/2, up 6 1/4 cents.

Mar 25 CBOT Wheat closed at $5.54, up 5 3/4 cents.

Dec 24 KCBT Wheat closed at $5.40, up 7 cents.

Mar 25 KCBT Wheat closed at $5.52 1/4, up 5 1/2 cents.

Dec 24 MGEX Wheat closed at $5.72 1/4, up 5 3/4 cents.

Mar 25 MGEX Wheat closed at $5.91 1/4, up 5 1/2 cents.

On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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