Wheat Market Trends: Steady Gains Despite Mixed Signals
As the week wrapped up, the wheat market showed stable to slightly higher trends. The Chicago SRW contracts increased by a fractional amount, landing up 1 ¼ cents for the day. Over the week, March futures rose 8 cents. In contrast, KC HRW contracts exhibited mixed results, with March futures declining by 3 ¼ cents this week. MPLS spring wheat futures remained steady, gaining up to 2 cents, though March saw a slight drop of ¾ cent since last Friday.
Market Closure for Martin Luther King Jr. Day
The markets, along with the government, will observe a closure on Monday in honor of Martin Luther King Jr. Day, resuming a regular schedule on Tuesday.
Traders Adjust Positions Ahead of Market Update
Recent Commitment of Traders data reveals that speculative funds have increased their short positions in Chicago wheat futures and options. As of Tuesday, they added 5,756 contracts to reach a total of 94,393 contracts. Similarly, in the KC wheat market, traders are now positioned with a net short of 37,606 contracts, marking an increase of 5,748 contracts as of January 14.
Export Sales Lag Behind USDA Projections
In the latest weekly Export Sales report, wheat sales for the week ending January 9 totaled 513,424 MT. This brings the total for the marketing year to 17.705 MMT, which accounts for 77% of the USDA’s forecast, falling short of the typical average sales pace of 85%.
Friday’s Wheat Futures Close
Mar 25 CBOT Wheat closed at $5.38 3/4, up 1 1/4 cents.
May 25 CBOT Wheat closed at $5.50 3/4, up 1 1/4 cents.
Mar 25 KCBT Wheat closed at $5.48 1/2, up 1/4 cent.
May 25 KCBT Wheat closed at $5.58 1/2, unchanged.
Mar 25 MGEX Wheat closed at $5.83 1/2, up 2 cents.
May 25 MGEX Wheat closed at $5.93 1/4, up 1 3/4 cents.
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information provided is for informational purposes only. For further details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.
