Wheat Markets Show Slight Declines as USDA Report Approaches
The wheat market is experiencing modest declines on Friday across all three exchanges. Chicago SRW futures are down 2 to 3 cents, albeit with the front month March contract showing a slight uptick. Kansas City HRW futures are down 3 to 4 cents in most front-month contracts, while Minneapolis spring wheat has also decreased by a similar margin of 3 to 4 cents among the nearby options. In the overnight session, there were 33 delivery notices against March KC futures, alongside 3 for March CBT wheat.
As of February 27, total wheat export commitments stand at 20.484 million metric tons (MMT), reflecting an 11% increase compared to the same period last year. This figure constitutes 89% of the USDA’s wheat export projection but lags behind the 97% average pace for export sales.
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Looking ahead, the USDA’s monthly WASDE report will be released on Tuesday. Traders do not expect significant changes to the US ending stocks projections, with the average estimate indicating a slight increase to 797 million bushels (mbu) from 794 mbu last month.
In international trade, Japan recently purchased 94,282 MT of wheat from the US, Australia, and Canada in their weekly tender, with 35,882 MT sourced specifically from the US. Additionally, French soft wheat ratings have improved to 73% good/excellent, marking a 1% increase from the prior week.
Mar 25 CBOT Wheat: $5.37, up 6 1/4 cents
May 25 CBOT Wheat: $5.51 1/2, down 2 1/2 cents
Mar 25 KCBT Wheat: $5.46 1/4, down 5 1/4 cents
May 25 KCBT Wheat: $5.62 1/2, down 3 1/4 cents
Mar 25 MGEX Wheat: $5.79 1/4, up 6 3/4 cents
May 25 MGEX Wheat: $5.90, down 4 cents
On the date of publication, Austin Schroeder did not hold any positions, either directly or indirectly, in the securities mentioned in this article. All information is intended for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
