Wheat Futures Decline Amid Strong US Dollar and Increased Export Sales
The wheat market is facing downward pressure on Friday. Chicago SRW futures are falling by 4 to 5 cents in nearby contracts, while KC HRW contracts reflect fractional losses up to 3 cents. MPLS spring wheat is down slightly, with losses ranging from fractions to 2 cents. Notably, December wheat options expire today, and first notice day is set for next Friday. Concurrently, the US dollar index is reaching new highs not seen in two years.
Export Sales Show Year-on-Year Growth
According to Export Sales data released Thursday, wheat and product shipments have seen a significant increase, jumping 32% year-over-year to a total of 10.078 million metric tons (MMT). This figure represents 44% of the USDA’s projected total for the marketing year, lagging behind the 47% average pace. Overall commitments now stand at 14.939 MMT, 23% higher than last year and 67% of the USDA target, albeit slightly behind the 69% average rate.
French Wheat Planting Progresses
In Europe, the French soft wheat crop is reported to be 90% planted, a notable rise from 78% the previous week and up from 73% during the same period last year. Additionally, 88% of the crop is rated in good or excellent condition, which is an improvement from 83% last year.
Current Wheat Prices
Dec 24 CBOT Wheat is trading at $5.43 3/4, down 5 cents.
Mar 25 CBOT Wheat is at $5.64 1/2, down 5 cents.
Dec 24 KCBT Wheat is priced at $5.55, down 1/2 cent.
Mar 25 KCBT Wheat stands at $5.64 3/4, down 2 1/2 cents.
Dec 24 MGEX Wheat is at $5.87 3/4, down 1/4 cent.
Mar 25 MGEX Wheat is trading at $6.00 1/2, down 1 3/4 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 here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
