Wheat Markets Surge Following Positive WASDE Report
The wheat market is experiencing midday gains across all three major exchanges on Tuesday. Chicago SRW futures are rising between 1 ½ and 4 cents. Overnight, there were three deliveries against the December CBT wheat futures. Meanwhile, KC HRW contracts are showing an increase of 4 to 5 cents. MPLS spring wheat prices are also up, varying between 1 to 3 cents, with December contracts specifically up 13 ¾ cents.
The latest WASDE report brought some encouraging news for wheat bulls, reporting a 25 million bushel increase in U.S. wheat exports to 850 million bushels. Imports also rose by 5 million bushels. U.S. ending stocks decreased by 20 million bushels to 795 million, surprising many market watchers who expected stability. However, despite the tighter U.S. supply, global stocks increased by 0.31 million metric tons, totaling 257.88 million metric tons largely due to a 1.16 million metric ton rise in carryover, as production in the EU fell by 1.3 million metric tons.
In Kansas, the State Crop Progress report indicated a 1% decline in winter wheat ratings, now at 55% good to excellent, while the Brugler500 ratings improved slightly, rising 2 points to 350.
On the international front, Japan has issued a weekly tender for 112,889 metric tons of wheat from the U.S., Canada, and Australia, including 58,986 metric tons specifically from the U.S. According to the EU Commission, soft wheat exports for the marketing year to date (starting July 1) reached 10.24 million metric tons by December 8, down from 14.41 million metric tons the previous year.
Dec 24 CBOT Wheat is priced at $5.45, an increase of 3 ¾ cents.
Mar 25 CBOT Wheat stands at $5.60 ¼, up by 1 ½ cents.
Dec 24 KCBT Wheat is trading at $5.53, up 10 ¾ cents.
Mar 25 KCBT Wheat sits at $5.63 ¼, an increase of 4 ½ cents.
Dec 24 MGEX Wheat is currently at $5.82 ¼, up 13 ¾ cents.
Mar 25 MGEX Wheat is at $6.04 ¾, an increase of 1 ½ cents.
On the date of publication,
Austin Schroeder
did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For further details, please view the Barchart Disclosure Policy
here.
More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
