Wheat Prices Rise Amid Positive Export Data and Mixed Crop Ratings
Midday Market Update Shows Gains in Wheat Futures
The wheat market is experiencing upward movement today. By midday Tuesday, prices for various contracts increased by 1 to 5 cents, with Kansas City (KC) contracts leading the way. Chicago Soft Red Winter (SRW) futures rose by 1 to 2 cents, while KC Hard Red Winter (HRW) contracts climbed by 4 to 5 cents. Additionally, Minneapolis (MPLS) spring wheat futures saw gains between 2 to 3 cents.
State Crop Progress Reports Provide Mixed Results
On Monday afternoon, the latest Crop Progress reports revealed significant insights. In Kansas, winter wheat ratings showed 47% in good/excellent condition, according to the Brugler500 index, which rated at 333. This marks a decline from 56% (351) in mid-December but is an improvement over last year’s 43% (318). Oklahoma also experienced a dip, with ratings falling 3% from late November to 45%, reflected by a Brugler500 index of 327.
US Wheat Exports Reach 4-Year High
According to US Census data, November wheat exports hit 1.417 million metric tons (MMT), or 52.06 million bushels (mbu), marking a four-year high for that month. This brought second-quarter exports to a total of 199.7 mbu, which comprises products, with the first half of the marketing year totaling 425 mbu.
Speculator Positions Shift in the Market
Recent reports from the Commodity Futures Trading Commission (CFTC) indicate that speculators in Chicago Board of Trade (CBT) wheat reduced their net short positions by 8,247 contracts, bringing them down to 86,762 contracts as of December 31. In KC wheat, net short positions also saw a decrease, dropping by 1,075 contracts to 33,861 contracts.
European Wheat Exports Decline
As of January 5, EU soft wheat exports totaled 11.16 MMT since the start of the export season in July, a decrease of 33.93% compared to 16.89 MMT during the same period last year.
Current Wheat Futures Prices
Mar 25 CBOT Wheat is trading at $5.41 3/4, reflecting an increase of 1 1/4 cents.
May 25 CBOT Wheat is currently at $5.53 1/2, up by 1 cent.
Mar 25 KCBT Wheat sits at $5.57 1/4, gaining 4 cents.
May 25 KCBT Wheat is priced at $5.66, up by 4 1/4 cents.
Mar 25 MGEX Wheat is at $5.94 1/2, which is an increase of 2 1/4 cents.
May 25 MGEX Wheat is currently valued at $6.02 1/2, also up by 2 1/4 cents.
On the date of publication, Austin Schroeder did not have any positions in the securities mentioned in this article, either directly or indirectly. All information and data in this article are solely for informational purposes. For more details, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
