Wheat Prices Defy Expectations
In an unexpected turn of events, midday trading sees the wheat board showcasing gains for Chicago and Minneapolis. Initially prone to downturns, futures have managed to steer away from the red, with SRW making strides as much as 7 cents above its trough, clinching fractional to 1 ¾ cent increases. Keeping investors on their toes, KC Wheat finds itself in a mixed state, hovering within a 2-cent range around UNCH across the front month contracts. Nevertheless, MGE wheat prices take the lead, boasting gains of up to 3 cents.
Forecasts and Projections
The latest data from NOAA’s updated 7-day Quantitative Precipitation Forecast indicates incoming moisture for the ECB, spanning from West Virginia through South-Central Iowa. Anticipated accumulations in Northern Indiana peak at approximately 2 1/2 inches, with a baseline expectation of at least 3/4 of an inch for most ECB fields.
Market Predictions and Insights
Prior to the upcoming weekly Export Sales report, traders eagerly await the USDA’s announcement regarding old crop wheat business. Speculations range from 100k MT of cancellations to 300k MT of new sales. Concerning new crop bookings, estimates fall between 50k MT and 250k MT for the week concluding on 3/21. Meanwhile, Interfax provides insights into Kazakhstan’s grain output projections for 24/25, painting a less rosy picture compared to the previous year. Expectations place grain production between 13 and 14 MMT, a decline from the 16.4 MMT recorded last year. Wheat acreage is estimated to be 3% lower, standing at 13.3m hectares.
Current Prices
May 24 CBOT Wheat is priced at $5.45 1/4, marking an increase of 1 3/4 cents.
Jul 24 CBOT Wheat stands at $5.60 1/2, up 1 1/4 cents.
May 24 KCBT Wheat shows a price of $5.78 1/2, rising by 1 1/4 cents.
Jul 24 KCBT Wheat is valued at $5.73 1/4, experiencing a marginal drop of 3/4 cent.
May 24 MGEX Wheat closes in at $6.49 1/2, reflecting an increase of 2 1/4 cents.
On the date of publication, Alan Brugler 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 perspectives shared in this piece belong to the author and may not necessarily align with those of Nasdaq, Inc.
