Wheat Markets Experience Decline Amidst Mixed USDA Data

In the latest trading session, wheat prices took a hit across three major exchanges. Despite some potentially positive USDA data, futures continued their downward trend on Tuesday.

Price Movements Across Exchanges

Chicago SRW futures ended the day down by 1 to 2 ½ cents. Meanwhile, KC HRW futures slipped, closing 4 to 5 cents lower. MPLS spring wheat saw a decline, with nearby contracts down 5 to 7 cents.

USDA’s Latest Report Influences Market Trends

The USDA’s WASDE report released on Tuesday revealed a reduction in the U.S. carryout projection by 4 million bushels, bringing it to 794 million bushels. This adjustment was attributed to a 4 million bushel increase in the food use category. Globally, the WAOB also revised down the world stocks total by 1.26 million metric tons to 257.56 million metric tons.

European and Global Export Figures Show Declines

According to the European Commission, the EU has exported 13 million metric tons of wheat from July 1 to February 9, falling short of last year’s figure of 20.37 million metric tons for the same period. French soft wheat exports outside the EU were estimated at 3.4 million metric tons, slightly down by 0.1 million metric tons from the previous month. However, exports within the EU rose to 6.24 million metric tons.

International Tender Activity

A South Korean importer is looking to buy 115,000 metric tons of feed wheat, with the tender closing today. Japan’s upcoming weekly tender will require 123,979 metric tons, sourced from the U.S., Australia, and Canada, along with a specific need of 34,026 metric tons from the U.S.

Current Wheat Futures Prices

As for the futures prices, here are the latest figures:

• Mar 25 CBOT Wheat: closed at $5.77, down 2 ½ cents; currently down 3 cents
• May 25 CBOT Wheat: closed at $5.90, down 2 ½ cents; currently down 3 ¾ cents
• Mar 25 KCBT Wheat: closed at $5.92 ¾, down 4 cents; currently down 2 cents
• May 25 KCBT Wheat: closed at $6.02 ¾, down 4 ¼ cents; currently down 2 ¼ cents
• Mar 25 MGEX Wheat: closed at $6.18 ¼, down 7 cents; currently down ½ cent
• May 25 MGEX Wheat: closed at $6.31 ¼, down 5 cents; currently down 2 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 are solely for informational purposes. For more details, please view the Barchart Disclosure Policy
here.

More news from Barchart

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.