Wheat Market Experiences Early Losses Amid Tariff Tensions

The wheat complex is experiencing early losses across the front months this Friday. Futures closed with mixed results across the three exchanges on Thursday. Chicago SRW futures decreased by 2 to 4 cents to end the day. In contrast, Kansas City HRW contracts saw minor gains, ranging from fractions to 2 cents. Preliminary open interest declined by 2,376 contracts, while MPLS spring wheat recorded losses of 1 to 2 cents on Thursday.

Impact of China’s Retaliatory Tariffs

In response to President Trump’s recent reciprocal tariffs, China imposed a retaliatory 34% tariff on all U.S. goods overnight. Although wheat volumes imported from the U.S. to China are minimal, this development has contributed to a risk-off sentiment in the market leading up to the weekend.

USDA Export Sales Report Insights

According to Thursday’s USDA Export Sales report, U.S. wheat sales reached 339,986 MT for the week ending March 27, marking a three-week high and significantly exceeding figures from the same week last year. Ecuador emerged as the top buyer with 71,900 MT, followed by Japan’s purchase of 59,300 MT. New crop sales were recorded at 95,242 MT.

February Wheat Export Figures

February wheat exports totaled 1.765 MMT (64.85 million bushels), according to Census data. This figure represents a 34.37% increase from January but is down 4.47% compared to the same period last year. Cumulatively, this brings the marketing year’s exports through the first three quarters to 584 million bushels (598 million including products).

Closing Prices for Wheat Futures

For wheat futures, the closing prices on May 25 were as follows:

• CBOT Wheat: closed at $5.36, down 3 1/4 cents
• KCBT Wheat: closed at $5.69, up 1/2 cent
• MGEX Wheat: closed at $5.91 1/4, down 1 1/4 cents

Additionally, the July contracts reflected these movements:

• CBOT Wheat: closed at $5.50, down 2 3/4 cents
• KCBT Wheat: closed at $5.80 3/4, up 1 cent
• MGEX Wheat: closed at $6.07, down 1 cent

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.

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