Wheat Markets Respond to Tariff Changes and USDA Reports

The wheat complex experienced a significant turnaround, closing Wednesday with gains across all three exchanges. Chicago SRW futures ended the day up by 1 to 3 cents. Kansas City HRW contracts increased by 5 to 7 cents during the session, while MPLS spring wheat posted gains ranging from 7 to 8 cents in the nearby contracts.

Mixed Market Reactions to Tariff Pause

Late in the Wednesday session, President Trump announced a 90-day tariff pause affecting several countries, although tariffs on China remain in place. The blanket 10% tariff will continue for all other countries, while tariffs on imports from China have been raised to a substantial 125%.

In related news, the USDA is set to release Export Sales data Thursday morning. The trade anticipates net reductions of 100,000 MT to net sales of 400,000 MT for old crop wheat, while new crop sales are projected to fall between 0-200,000 MT.

Upcoming USDA Estimates and Projections

The USDA will also update its estimates for U.S. wheat ending stocks on Thursday, with analysts projecting a total of 825 million bushels (mbu). This figure represents a 6 mbu increase from the previous month. Additionally, world ending stocks are expected to rise by 0.31 million metric tons (MMT) to 260.39 MMT, based on a Reuters survey of industry experts.

Closing Prices

• May 25 CBOT Wheat closed at $5.42 1/4, up 2 1/4 cents.
• Jul 25 CBOT Wheat closed at $5.55 3/4, up 1 3/4 cents.
• May 25 KCBT Wheat closed at $5.68, up 6 1/2 cents.
• Jul 25 KCBT Wheat closed at $5.80 1/4, up 5 1/4 cents.
• May 25 MGEX Wheat closed at $6.08 3/4, up 7 3/4 cents.
• Jul 25 MGEX Wheat closed at $6.21 1/2, up 7 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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy.

 

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