Wheat Market Sees Significant Gains Across Exchanges on Tuesday

The wheat complex experienced a robust buying session on Tuesday, with double-digit gains across all three major exchanges. Chicago SRW futures rose by 16 to 17 cents, while Kansas City HRW contracts increased by 13 to 14 cents. Minneapolis spring wheat futures saw gains of 11 to 13 cents. Traders attributed these movements partly to warmer weather in various Chinese wheat regions and recent frosts in Russia. Additionally, some short covering likely contributed to the uptick.

Crop Progress and Conditions Update

Weekly Crop Progress data indicated that all six states surpassed the average pace for spring wheat planting. However, Montana’s emergence remains slow due to a delayed planting start.

Winter Wheat and Condition Ratings

Current reports show that 64% of winter wheat is headed, marking a 6 percentage point advance compared to the average. Among the 18 states, Idaho, Illinois, Michigan, Montana, North Carolina, Oklahoma, and South Dakota lagged behind. The overall conditions dropped 2% to 52% classified as good or excellent. The Brugler500 index also fell by 2 points to 336, with significant declines observed in Colorado and Texas, where ratings dropped by 13 and 14 points respectively. Conversely, South Dakota improved by 22 points, while Kansas, Nebraska, and Oklahoma observed modest gains of 4, 7, and 6 points respectively.

European and Argentine Market Movements

According to the European Commission, the EU has exported 18.45 million metric tons (MMT) of wheat from July 1 to May 18, trailing behind the 27.89 MMT exported during the same period in 2023/24. In Argentina, the government has decided to extend the reduction of the export tax on wheat from 12% to 9.5% through March 31, 2026, an extension past the initial expiration date of June.

Closing Prices on July 25

Jul 25 CBOT Wheat closed at $5.46, up 17 cents.

Sep 25 CBOT Wheat closed at $5.59 3/4, up 16 3/4 cents.

Jul 25 KCBT Wheat closed at $5.36 1/4, up 13 1/2 cents.

Sep 25 KCBT Wheat closed at $5.50, up 13 1/2 cents.

Jul 25 MGEX Wheat closed at $5.97 3/4, up 12 1/4 cents.

Sep 25 MGEX Wheat closed at $6.10 1/4, up 11 1/2 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 is solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.