Wheat Prices Surge as Dollar Weakens
The wheat markets experienced a significant uptick on Tuesday, supported by a decline in the US dollar index, which fell by 1.443 points. In particular, the Chicago SRW market saw gains of 19 to 21 cents. Similarly, KC HRW contracts increased by 24 to 27 cents for nearby futures, while MPLS spring wheat futures climbed by 19 to 22 cents at the day’s end.
Weekly Export Data Highlights Changing Trends
According to the Weekly Export Inspections data, a total of 261,786 MT (9.62 mbu) of wheat was shipped during the week of January 16. This represented a decrease of 12.5% from the previous week and a substantial drop of 16.94% compared to the same week in 2022. Mexico emerged as the leading destination, importing 48,992 MT, followed closely by South Korea with 45,071 MT. Year-to-date shipments now total 13.279 MMT (487.9 mbu), reflecting an impressive increase of 23.83% from last year.
International Demand Remains Strong
In related news, Japan has put out a tender for 126,893 MT of wheat sourced from the US, Canada, and Australia, with a specific request for 30,793 MT from the US. Meanwhile, the European Commission reported that wheat exports from Europe totaled 11.74 MMT during the period from July 1 to January 19, marking a decrease of 6.75 MMT from the previous year.
Closing Prices for Wheat Contracts
Mar 25 CBOT Wheat closed at $5.58 3/4, up 20 cents.
May 25 CBOT Wheat closed at $5.71 1/2, up 20 3/4 cents.
Mar 25 KCBT Wheat closed at $5.75 1/2, up 27 cents.
May 25 KCBT Wheat closed at $5.85 1/2, up 27 cents.
Mar 25 MGEX Wheat closed at $6.04 1/2, up 21 cents.
May 25 MGEX Wheat closed at $6.15, up 21 3/4 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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
