On Friday, the wheat market saw significant gains, with Chicago SRW contracts rising by 15 ¼ to 20 ¾ cents, and nearby September contracts up 40 ½ cents for the week. Kansas City HRW futures gained 17 ¾ to 22 cents, with September up 37 ¾ cents. Minneapolis spring wheat also rose by 11 ½ to 14 ¼ cents, reflecting a weekly increase of 33 ¾ cents.
The rally was driven by reports of restricted export flows from Russia through the Don-Azov channel, crucial for nearly a quarter of the nation’s wheat shipments. Additionally, the USDA’s latest Crop Production data indicated a slight reduction in total wheat production to 1.536 billion bushels, with winter wheat production falling short of estimates at 990 million bushels. U.S. carryout declined by 22 million bushels, now at 722 million bushels.
In terms of global stocks, the USDA’s WASDE report indicated a reduction of 2.78 million metric tons in world wheat stocks, totaling 272.84 million metric tons, with notable decreases from the U.S., Argentina, Canada, and the EU. In Europe, Coceral lowered output forecasts by 2.9 million metric tons to 140.8 million metric tons.
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