Wheat Market Declines Amid Forecasted Rain Showers

The wheat market is experiencing ongoing weakness as of Friday. Chicago SRW futures have fallen by 8 to 9 cents at midday. Kansas City HRW contracts are notably declining as well, with losses between 17 to 18 cents. In the MPLS spring wheat sector, prices are down 7 to 10 cents across the front months.

Rain is forecasted for the upcoming week, likely totaling 1 to 3 inches in many areas of SRW country. In contrast, HRW regions are primarily dry, except for parts of the eastern Southern Plains.

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USDA’s Export Sales data shows that wheat commitments stand at 21.092 MMT as of March 20, which is 12% higher than the same week last year. However, this figure is only 93% of the USDA’s projections and falls short of the average pace of 101%.

The National Agricultural Statistics Service (NASS) is set to release the March 1 Grain Stocks data next Monday. A Bloomberg survey anticipates that the average wheat stock on hand will be 1.221 billion bushels (bbu), with estimates ranging from 1.169 to 1.260 bbu.

May 25 CBOT Wheat is currently priced at $5.23 1/2, down 8 1/2 cents.

July 25 CBOT Wheat is at $5.38 1/2, down 8 3/4 cents.

May 25 KCBT Wheat is priced at $5.48 3/4, down 17 1/2 cents.

July 25 KCBT Wheat stands at $5.62 1/4, also down 17 1/2 cents.

May 25 MGEX Wheat is currently at $5.79 1/4, down 9 1/4 cents.

July 25 MGEX Wheat has a price of $5.95 1/2, declining by 7 3/4 cents.

On the date of publication, Austin Schroeder did not hold positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data herein are intended solely for informational purposes. For further details, please view the Barchart Disclosure Policy here.

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