Wheat Prices Decline Following USDA’s Latest Bearish Update

The wheat market has taken a downturn across three exchanges on Thursday, spurred by a bearish report from the USDA. At midday, Chicago SRW futures were retreating between 3 to 5 cents in the nearby months. Kansas City HRW contracts dropped by 5 to 8 cents, while MPLS spring wheat moved downward by 6 to 8 cents.

USDA Export Sales Data Released

This morning, the USDA shared its Export Sales data, indicating 107,280 MT of wheat were reported. This figure fell within the trade estimates, which ranged from a net reduction of 100,000 MT to net sales of 400,000 MT for the old crop. Meanwhile, new crop sales reached 107,728 MT, which was consistent with estimates of 0 to 200,000 MT.

Impact on U.S. and Global Ending Stocks

US wheat ending stocks saw an increase of 27 million bushels to a total of 846 million bushels, which exceeded forecasts. This rise occurred alongside a 10 million bushel uptick in imports, a 15 million bushel reduction in exports, and a 2 million bushel cut in seed use. Additionally, world ending stocks climbed by 0.62 MMT to 260.70 MMT.

The European Commission also adjusted its wheat production estimate, raising it by 0.6 MMT to a new total of 128.1 MMT.

Latest Futures Prices

May 25 CBOT Wheat: at $5.37 1/2, down 4 3/4 cents

Jul 25 CBOT Wheat: at $5.52 1/2, down 3 1/4 cents

May 25 KCBT Wheat: at $5.60 3/4, down 7 1/4 cents

Jul 25 KCBT Wheat: at $5.74 1/2, down 5 3/4 cents

May 25 MGEX Wheat: at $6.01 1/2, down 7 1/4 cents

Jul 25 MGEX Wheat: at $6.15, down 6 1/2 cents

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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