Wheat Futures Rise Amid Growing Tensions in the Black Sea
The wheat market saw strong performance on Monday, driven by increasing unrest in the Black Sea region. Chicago SRW futures climbed 9 to 11 3/4 cents, while KC HRW contracts gained 10 3/4 to 15 1/4 cents. MPLS spring wheat also rose, with an increase of 11 1/4 to 13 1/4 cents.
U.S. Tactical Moves Influence Market Sentiment
Recent developments have fueled market activity. Over the weekend, President Biden authorized Ukraine to utilize U.S. long-range missiles within Russian territory. While the wheat market has historically reacted in a muted manner to the ongoing conflict, this news has sparked some short-covering activity.
US Winter Wheat Crop Progress Report
The latest Crop Progress report released by NASS indicates that as of November 17, 94% of the U.S. winter wheat crop has been planted, which is 2 percentage points behind the average. Emergence is reported at 84% completion, and the condition ratings for the crop have seen a 5% improvement, now standing at 49% good/excellent. The Brugler500 index increased by 12 points to reach 338. Over the next week, much of the Southern Plains appears set for drier conditions, with only minimal rainfall expected in some SRW areas.
Export Inspections Show Decline
This morning’s Export Inspections report revealed that 196,281 MT (7.2 mbu) of wheat were shipped during the week ending November 14. This figure represents a significant decline of 44.44% from the previous week and a 48.08% drop compared to the same week last year. Mexico received the largest shipment at 63,669 MT, followed by Taiwan with 57,744 MT and South Korea with 43,713 MT. So far in the marketing year, total shipments have reached 10.325 MMT (379.37 mbu), which is 31.37% higher than the same time last year.
Wheat Futures Trading Data
Dec 24 CBOT Wheat closed at $5.47 1/4, up 10 3/4 cents.
Mar 25 CBOT Wheat closed at $5.65 3/4, up 11 3/4 cents.
Dec 24 KCBT Wheat closed at $5.55 1/4, up 15 1/4 cents.
Mar 25 KCBT Wheat closed at $5.67, up 14 3/4 cents.
Dec 24 MGEX Wheat closed at $5.85, up 12 3/4 cents.
Mar 25 MGEX Wheat closed at $6.04 1/4, up 13 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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