Wheat Futures Rally as U.S. Dollar Weakens

The wheat complex experienced a notable upswing on Friday, with all three exchanges posting gains. Chicago SRW futures rose between 16 and 18 cents across front-month contracts, with May futures surging 26 ¾ cents. Kansas City HRW contracts climbed 10 to 11 cents during the session, led by a 10 ½ cent increase in May contracts compared to last Friday. Similarly, MPLS spring wheat displayed strength, closing up 12 to 13 cents on the front months, with nearby May futures up 30 ½ cents. This movement occurred alongside a significant drop in the U.S. dollar index, which closed below $100 on Friday.

The weekly CFTC Commitment of Traders report indicated that managed money reduced their net short position by 9,908 contracts, bringing their total to 102,132 contracts as of April 8. In the Kansas City wheat market, managed money added 4,159 contracts to their net short, now totaling 49,834 contracts.

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USDA Export Sales data released on Thursday reported total wheat export business at 21.55 million metric tons (MMT), which accounts for 96.55% of the latest USDA export projection. The 5-year average sales pace stands at 102%. Additionally, export shipments reached 17.3 MMT, representing 77.5% of USDA’s new target but lagging behind the 5-year average pace of 83%.

In France, soft wheat crop ratings are currently at 75% classified as good/excellent, marking a 1% decrease for the week, according to data from FranceAgriMer.

Here are the closing prices for wheat futures:

May 25 CBOT Wheat closed at $5.55 3/4, up 17 3/4 cents.

Jul 25 CBOT Wheat closed at $5.70 1/4, up 16 3/4 cents.

May 25 KCBT Wheat closed at $5.68, up 10 cents.

Jul 25 KCBT Wheat closed at $5.83 1/4, up 10 1/4 cents.

May 25 MGEX Wheat closed at $6.15, up 13 cents.

Jul 25 MGEX Wheat closed at $6.28 1/2, up 12 cents.

At the time 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 provided solely for informational purposes. For further details, please review the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.