Wheat Futures Slide as Exports Show Mixed Numbers
Wheat futures are starting the week on a weak note, with prices declining across all three major exchanges. Chicago SRW futures have recorded losses between 2 to 3 cents so far this Monday. On Friday evening, there were 5 deliveries against May CBT wheat. Kansas City HRW futures have experienced similar pressure, dropping 4 to 5 cents, while Minneapolis spring wheat futures are down 6 to 7 cents.
USDA Export Inspections Report
The USDA’s Export Inspections report revealed that a total of 405,170 metric tons (14.88 million bushels) of wheat were shipped during the week ending May 8. This marked a minor decrease of 1.61% from the previous week but represented a 5.77% increase compared to the same week last year. The Philippines was the leading destination, receiving 127,569 MT, followed by Mexico, which took in 83,779 MT. Cumulatively, marketing year shipments have reached 20.28 million metric tons (649.1 million bushels), reflecting an increase of 14.79% year-over-year.
Wheat Production Estimates
According to the Crop Production report, winter wheat production is estimated at 1.382 billion bushels, comprising 784 million bushels of HRW, 345 million bushels of SRW, and 253 million bushels of white winter wheat. Overall, the wheat production outlined in the WASDE report came in at 1.921 billion bushels, exceeding trade estimates.
US and World Wheat Stocks
The old crop U.S. balance sheet indicates a carryout of 841 million bushels, a decline of 5 million bushels from the previous month. For the new crop, the carryout is projected at 923 million bushels, supported by the large production figure. On the world stage, USDA reported a 4.51 million metric ton increase in stocks to a total of 265.21 million metric tons, with an initial estimate for the new crop set at 265.73 million metric tons.
Upcoming Expectations
Looking ahead to the weekly Crop Progress update, expectations suggest that 62% of spring wheat will be planted. Meanwhile, winter wheat conditions are forecasted to remain steady at 51% this week.
Current Wheat Futures Prices
Jul 25 CBOT Wheat is priced at $5.19 1/4, down 2 1/2 cents.
Sep 25 CBOT Wheat is at $5.33 3/4, down 2 3/4 cents.
Jul 25 KCBT Wheat is at $5.12 1/2, down 5 cents.
Sep 25 KCBT Wheat is at $5.27, down 4 3/4 cents.
Jul 25 MGEX Wheat is at $5.86 3/4, down 6 3/4 cents.
Sep 25 MGEX Wheat is priced at $6.00, down 6 1/2 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 provided in this article are meant solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.
The views expressed in this article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
