Wheat Futures Rise Amid USDA Stock Report Changes
USDA Report Boosts Market Confidence
The wheat market experienced positive movements on Tuesday after the USDA announced a reduction in stocks. Chicago SRW futures climbed between 3 to 5 1/4 cents across most contracts, with December rising by ¾ cent. Kansas City hard red winter (KC HRW) contracts also saw gains, increasing by 3 3/4 to 7 cents. Minneapolis spring wheat (MPLS) ended the day steady to 3 1/2 cents higher.
Export and Production Insights from WASDE Report
The monthly World Agricultural Supply and Demand Estimates (WASDE) report surprised many traders with a positive outlook. U.S. wheat exports increased by 25 million bushels (mbu), reaching a total of 850 mbu, while imports grew by 5 mbu. Consequently, U.S. ending stocks fell by 20 mbu to 795 mbu, contrasting with market expectations for stable figures. However, global stocks rose by 0.31 million metric tons (MMT) to 257.88 MMT, primarily due to a 1.16 MMT increase in carryover, even as European production dipped by 1.3 MMT.
International Demand for Wheat Remains Strong
In international trade developments, Japan announced a weekly tender for 112,889 metric tons (MT) of wheat from the U.S., Canada, and Australia, specifically requesting 58,986 MT from the U.S. Meanwhile, the European Union’s commission reported that soft wheat exports since the marketing year began on July 1, totaled 10.24 MMT, a decrease compared to 14.41 MMT during the same period last year.
Current Market Prices for Wheat Futures
Dec 24 CBOT Wheat closed at $5.42, up 3/4 cent.
Mar 25 CBOT Wheat closed at $5.61 3/4, up 3 cents.
Dec 24 KCBT Wheat closed at $5.49 1/4, up 7 cents.
Mar 25 KCBT Wheat closed at $5.65 3/4, up 7 cents.
Dec 24 MGEX Wheat closed at $5.82 1/4, unchanged.
Mar 25 MGEX Wheat closed at $6.06 1/2, up 3 1/4 cents.
On the date of publication, Austin Schroeder did not hold any positions in the securities mentioned in this article. All information and data provided here are for informational purposes only. For further details, please review the Barchart Disclosure Policy here.
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