Wheat Futures Rebound Amid Tariff Announcements

Wheat futures recovered from overnight declines, with varying results across the three trading exchanges. Chicago SRW futures ended the day down by 2 to 4 cents. In contrast, Kansas City HRW contracts managed slight gains, rising by up to 2 cents. Meanwhile, MPLS spring wheat recorded losses between 1 to 2 cents on Thursday.

Impact of Tariff Policies on Markets

On Wednesday, President Trump announced new tariffs, notably excluding Mexico and Canada. The existing exemption for all USMCA compliant goods will remain in effect. New reciprocal tariffs will apply to Japan at 24%, South Korea at 25%, and the Philippines at 17%, effective April 9.

USDA’s Export Sales Report Overview

The USDA’s Export Sales report indicated that U.S. wheat sales reached 339,986 MT for the week ending March 27. This figure exceeded market expectations ranging from net reductions of 100,000 MT to net sales of 300,000 MT and marked a 3-week high, significantly higher than the same week in the previous year. Ecuador led purchases with 71,900 MT, while Japan bought 59,300 MT. Additionally, new crop sales amounted to 95,242 MT, aligning with the expected range of 0 to 200,000 MT.

February Export Data

According to Census data, February wheat exports totaled 1.765 MMT (64.85 million bushels), reflecting a 34.37% increase compared to January, but a decrease of 4.47% from the same month last year. Cumulatively, the marketing year’s exports for the first three quarters reached 584 million bushels (598 million including products).

Wheat Futures Closing Prices

May 25 CBOT Wheat closed at $5.36, down 3 1/4 cents.

Jul 25 CBOT Wheat closed at $5.50, down 2 3/4 cents.

May 25 KCBT Wheat closed at $5.69, up 1/2 cent.

Jul 25 KCBT Wheat closed at $5.80 3/4, up 1 cent.

May 25 MGEX Wheat closed at $5.91 1/4, down 1 1/4 cents.

Jul 25 MGEX Wheat closed at $6.07, down 1 cent.

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 details, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.