Wheat Markets Rise Amid Solid Export Sales and Tariff Updates

The wheat market is showing positive movement across the three major exchanges during Thursday’s midday trading. Chicago SRW futures have increased by 10 to 13 cents so far today, while KC HRW futures have posted gains of 8 to 13 cents across most front months. Notably, there were 26 deliveries against March KC wheat overnight. MPLS spring wheat is also witnessing increases of 8 to 9 cents in the nearby contracts.

Export Sales Data Highlights Growth

Export sales data for the week ending February 27 indicated a total of 338,703 metric tons (MT) in wheat sales. This figure falls within the expected range of 225,000 to 450,000 MT and marks a 25.91% increase from the previous week. Furthermore, it is 24.92% higher than the same week last year. Notably, new crop sales were reported at 77,000 MT, surpassing estimates of 0 to 75,000 MT.

January Exports Hit Historic Low

The monthly Census data release revealed that January wheat exports were only 1.313 MT (approximately 48.26 million bushels), the lowest for that month since 1972. This represents a drop of 20.53% compared to last year and is also 9.4% below December’s figures.

Tariff Delay and Global Purchases

In trade news, President Trump has announced a delay of one month in the pause on tariffs related to the USMCA agreement affecting Mexico. Although the announcement did not mention Canadian tariffs directly, previous comments suggested there is a possibility for exemption.

Meanwhile, South Korean importers have made substantial purchases, acquiring a total of 98,200 MT of wheat from the United States and Canada, with 50,000 MT sourced specifically from the U.S.

Current Wheat Prices

Mar 25 CBOT Wheat is trading at $5.30 3/4, an increase of 12 1/4 cents.

May 25 CBOT Wheat stands at $5.59, up 10 3/4 cents.

Mar 25 KCBT Wheat is priced at $5.42 1/4, reflecting an increase of 8 1/4 cents.

May 25 KCBT Wheat is at $5.69 1/4, gaining 12 1/4 cents.

Mar 25 MGEX Wheat is trading at $5.72 1/2, up 8 cents.

May 25 MGEX Wheat is being offered at $5.96 3/4, with an increase of 8 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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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