Wheat Futures Show Mixed Results Amid USDA Reports
Wheat futures varied on Friday across three exchanges as USDA reports indicated less favorable conditions for the small grain. Chicago SRW futures decreased by ½ to 3 ¼ cents in nearby contracts, while deferred futures rose by ¼ to 5 cents. In contrast, KC HRW futures ended the day with gains ranging from 1 ½ to 5 cents, marking a notable rise of 12 ¾ cents since last Friday. Meanwhile, MPLS spring wheat futures remained steady, closing 2 cents higher for the session and gaining 6 ½ cents over the week.
Weak Export Sales Add to Market Pressures
For the week ending January 2, the weekly Export Sales report revealed disappointing numbers, with sales reaching a new marketing year low of just 111,309 MT. This figure fell short of the expected range of 150,000 to 500,000 MT. South Korea emerged as a significant buyer, purchasing 68,100 MT, with an additional 35,300 MT sold to the Philippines. However, net reductions of 89,000 MT were recorded for unknown destinations, most of which were redirected to other locations.
Grain Stocks and Seedings Indicate Growth
According to the December 1 Grain Stocks report, wheat stocks totaled 1.569 billion bushels, showing an increase of 148 million bushels from the previous year and exceeding the average trade estimate by 4 million bushels. The latest US WASDE balance sheet reflected minimal changes, with imports rising by 5 million bushels, and ending stocks increasing by 3 million bushels to reach 798 million bushels. In the global market, world wheat ending stocks were adjusted upward by 0.94 MMT, now at 258.82 MMT.
The Winter Wheat Seedings report indicated a total of 34.115 million acres of winter wheat, which is 725,000 acres more than last year. The HRW segment accounted for 24 million acres (up 213,000 acres), while SRW reached 6.44 million acres (up 378,000 acres) and white wheat totaled 3.64 million acres (up 99,000 acres).
Wheat Futures Prices
Mar 25 CBOT Wheat closed at $5.30 ¾, down 3 ¼ cents.
May 25 CBOT Wheat closed at $5.43 ½, down 2 ½ cents.
Mar 25 KCBT Wheat closed at $5.51 ¾, up 1 ½ cents.
May 25 KCBT Wheat closed at $5.60 ¾, up 2 ¼ cents.
Mar 25 MGEX Wheat closed at $5.84 ¼, up ¾ cent.
May 25 MGEX Wheat closed at $5.92 ½, up ¾ 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 is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
