Wheat Prices Decline Amid Strong U.S. Dollar

The wheat market faced downward pressure on Thursday, primarily due to the U.S. dollar index reaching a one-year high, climbing 414 points. Chicago SRW futures fell 1 ½ to 3 3/4 cents by market close. Similarly, KC HRW contracts dropped by 5 to 6 1/4 cents, while MPLS spring wheat saw a decrease of 4 to 6 cents during the trading session.

Recent export sales data revealed that all wheat sales totaled 549,601 MT for the week ending November 14. This number sits at the upper end of estimates, which ranged between 275,000 and 600,000 MT, and shows an increase of 9.42% from the previous week. South Korea emerged as the largest purchaser, buying 200,100 MT, followed by Mexico at 91,000 MT.

Taiwan also joined the buyers’ list, purchasing 80,000 MT of U.S. wheat in its latest tender.

In additional developments, the International Grains Council reported a decline in estimated world wheat production, now at 796 MMT, down by 2 MMT. Conversely, global wheat consumption rose by 1 MMT, leading to a reduction in stocks by 3 MMT, which now stand at 263 MMT.

Dec 24 CBOT Wheat closed at $5.48 3/4, down 3 3/4 cents.

Mar 25 CBOT Wheat closed at $5.69 1/2, down 2 3/4 cents.

Dec 24 KCBT Wheat closed at $5.55 1/2, down 6 1/4 cents.

Mar 25 KCBT Wheat closed at $5.67 1/4, down 5 1/2 cents.

Dec 24 MGEX Wheat closed at $5.88, down 4 cents.

Mar 25 MGEX Wheat closed at $6.02 1/4, down 5 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 is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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