Midday Trading Update
As we approach the weekend, wheat futures in the U.S. are on the rise. Chicago prices have surged by 4 ¾ to 6 cents, propelling May to a 25 cent gain for the week. Meanwhile, KC wheat is trading five cents higher, with May up 21 cents Fri/Fri. Additionally, spring wheat futures in Minneapolis have seen a rise of 4 ½ to 5 ½ cents.
Oats Futures Trend
Oats futures prices are also in positive territory, showing gains of 2 to 3 cents. Despite this, the May contract remains down by 9 cents for the week.
Market Insights
According to USDA’s FAS, old crop wheat bookings experienced a net reduction of 109k MT, including a specific cancellation from China, during the week ending on 3/14. Nonetheless, old crop sales to China still stand at 29 million bushels. New crop bookings amounted to 286k MT, pushing the forward book to 803k MT, which is 20% ahead of last year’s pace. Old crop commitments are still 3% ahead of last year, with 18.4 MMT recorded in the books.
Japan recently secured 221k MT of wheat through a regular MOA tender, with 113k MT expected to be of U.S. origin. Adding to the positive sentiment, SovEcon has raised their outlook for the 24/25 wheat output by 400k MT to 94 MMT due to an easy winter with below-average winterkill.
Current Prices
May 24 CBOT Wheat is currently priced at $5.48, up 1 1/4 cents,
Jul 24 CBOT Wheat is at $5.62 3/4, up 3/4 cent,
May 24 KCBT Wheat stands at $5.82 1/2, up 3/4 cent,
Jul 24 KCBT Wheat is at $5.76 1/2, up 1 cent,
May 24 MGEX Wheat is at $6.56, down half a cent,
As of the publication date, Alan Brugler did not hold (either directly or indirectly) any positions in the securities mentioned. All information and data in this article are solely for informational purposes.
The expressed views and opinions are those of the author and may not necessarily reflect those of Nasdaq, Inc.
