Wheat Futures Surge as U.S. Exports Decline
Wheat prices continue to rise on Tuesday, with significant gains across various markets. At midday, Chicago SRW futures increased by 3 to 5 cents, while KC HRW futures saw rises of 5 to 6 cents. Additionally, MPLS spring wheat traded up by 6 to 8 cents.
U.S. Export Inspections Show Declines
The USDA’s weekly Export Inspections report indicated that only 249,812 MT (9.2 million bushels) were shipped during the week of February 13. This figure fell sharply by 56.2% from the prior week and was 40.56% lower than the same week last year. Mexico emerged as the largest buyer, importing 68,986 MT, while South Korea received 68,699 MT. For the marketing year, total shipments have reached 14.849 MMT (545.6 million bushels), marking a 22.4% increase compared to the same timeframe in 2024.
Speculators Adjust Positions
According to data from the CFTC, speculators reduced their net short positions by a total of 7,633 contracts, resulting in a net short of 82,809 contracts as of Tuesday. In KC wheat, this net short was decreased by 5,733 contracts, bringing it down to 53,248 contracts.
International Demand on the Rise
On Monday, Saudi Arabia made a notable purchase of 920,000 MT of wheat in their latest tender. Meanwhile, Japan has also issued a tender seeking to buy 96,160 MT of wheat from Australia, Canada, and the U.S., including 34,890 MT specifically from the United States.
Current Wheat Prices
Mar 25 CBOT Wheat: $6.04 1/2, up 4 1/2 cents
May 25 CBOT Wheat: $6.17 1/4, up 3 3/4 cents
Mar 25 KCBT Wheat: $6.26 1/4, up 5 cents
May 25 KCBT Wheat: $6.38 1/4, up 5 1/2 cents
Mar 25 MGEX Wheat: $6.41, up 7 1/2 cents
May 25 MGEX Wheat: $6.56, up 6 3/4 cents
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 information, please view the Barchart Disclosure Policy here.
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