Wheat Futures Rise Amid Mixed Export Numbers and Political Developments
The wheat markets showed positive movement across major exchanges on Monday. Chicago SRW futures increased by 6 to 8 cents in the nearby contracts. Kansas City HRW futures also climbed 6 to 8 cents for the front months. Meanwhile, MPLS spring wheat saw a modest rise of 1 to 2 cents during the day. However, precipitation in the Plains is expected to be minimal over the coming week.
Export Inspections Reflect Decline in Wheat Shipments
According to the Export Inspections report, wheat exports totaled 251,637 metric tons during the week ending January 30. This figure marks a significant drop of 47.86% from the previous week and is 14.52% lower than the same week last year. Shipments were relatively diverse, with 55,000 metric tons going to the Philippines, 40,000 metric tons destined for South Korea, and 38,303 metric tons bound for Egypt. Currently, marketing year shipments stand at approximately 14.03 million metric tons (or 515.5 million bushels), reflecting a 21.12% year-over-year increase.
Political Developments Impact Tariffs
This morning, President Trump met with Mexico’s President, resulting in a one-month delay for tariffs on Mexico, initially set to start on Tuesday. Mexico plans to deploy 10,000 troops to the border to help curb drug trafficking. After a following meeting with Canadian Prime Minister Trudeau, tariffs on Canada were also postponed by a month.
Crop Progress Reports Show Varied State Performance
State Crop Progress data indicates that Kansas is rated at 40% good to excellent, with a Brugler500 rating of 317. Oklahoma’s winter wheat ratings are at 50% good to excellent, corresponding to a Brugler500 score of 339. In Texas, the ratings sit at 37% good to excellent with a Brugler500 index of 311.
Closing Wheat Futures Prices
March 25 CBOT Wheat closed at $5.66 3/4, an increase of 7 1/4 cents. May 25 CBOT Wheat rose to $5.78 1/2, up 6 1/4 cents. March 25 KCBT Wheat finished at $5.85 3/4, up 6 1/2 cents. May 25 KCBT Wheat closed at $5.95 1/4, climbing 6 1/4 cents. March 25 MGEX Wheat ended the day at $6.16 1/2, gaining 1 cent, while May 25 MGEX Wheat increased by 1 1/2 cents to close at $6.24 1/2.
As of the publication date, Austin Schroeder did not hold any positions, directly or indirectly, in the securities mentioned in this article. All information in this article is for informational purposes only. For further details, please review the Barchart Disclosure Policy here.
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