Wheat Markets Dip Amid Strong Dollar, South Korea Makes Notable Purchases
Wheat futures finished lower on Wednesday, despite stronger activity in the Chicago Board of Trade (CBT) market. The US dollar index’s rally added pressure to prices, with Chicago SRW futures hovering close to unchanged levels for the day. Kansas City Hard Red Winter (HRW) contracts decreased by 2 1/2 to 3 3/4 cents, while Minneapolis (MPLS) spring wheat dropped 4 to 5 cents.
This week, analysts anticipate that the Weekly Export Sales report will reveal old crop wheat sales between 250,000 and 550,000 metric tons, with new crop sales estimated at 0 to 50,000 metric tons.
Upcoming USDA Report Could Show Stable Stock Predictions
As the USDA’s World Agricultural Supply and Demand Estimates (WASDE) report approaches on Friday, analysts surveyed by Reuters predict little change in US wheat ending stocks, estimating an average of 813 million bushels. The estimates range from 800 to 830 million bushels. For the 2024/25 outlook, world wheat stocks are expected to decline by 0.93 million metric tons to 256.79 million metric tons.
South Korea Secures Significant Wheat Imports
In a notable tender on Wednesday, South Korea successfully purchased a total of 100,000 metric tons of wheat, sourcing 50,000 metric tons each from the US and Australia.
Market Closing Prices
Dec 24 CBOT Wheat closed at $5.73 1/4, up 3/4 cent,
Mar 25 CBOT Wheat closed at $5.91, unchanged,
Dec 24 KCBT Wheat closed at $5.74, down 2 3/4 cents,
Mar 25 KCBT Wheat closed at $5.85 3/4, down 3 1/4 cents,
Dec 24 MGEX Wheat closed at $6.05 1/2, down 5 cents,
Mar 25 MGEX Wheat closed at $6.27 1/2, down 4 3/4 cents.
On the date of publication, Austin Schroeder did not hold any direct or indirect positions in the securities mentioned in this article. The information provided is strictly for informational purposes. For further details, please view the Barchart Disclosure Policy here.
The views expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
