On Tuesday, March 26, 2023, the wheat market experienced significant declines, with Chicago SRW futures dropping 12 to 13 cents, KC HRW futures losing 11 cents, and MPLS spring wheat closing down 11 to 12 cents. Concurrently, crude oil prices fell $8.38 as the U.S. commenced escorting vessels through the Strait of Hormuz due to tensions with Iran.
The USDA’s WASDE report indicated no changes to the U.S. balance sheet, maintaining stocks at 931 million bushels, while the average cash price rose to $4.95. Global ending stocks were reduced by 0.55 million metric tons (MMT) to 276.96 MMT, with adjustments in Argentine, Russian, and EU exports noted. Additionally, the Kansas Crop Progress report indicated a decline in winter wheat conditions to 56% good/excellent.
According to the European Commission, EU soft wheat exports reached 16.5 MMT from July 1 to March 8, a rise of 1.4 MMT year-over-year. On Tuesday, Algeria was reported to have purchased approximately 200,000 metric tons of wheat.
