Wheat Market Sees Gains as Export Inspections Surge
The wheat market is trading positively across all major markets at midday. Chicago SRW futures have increased by 1 to 2 cents. Meanwhile, Kansas City HRW contracts are up by 4 to 5 cents. Notably, Minneapolis spring wheat futures are showing a rise of 8 to 9 cents.
Export Data Highlights Significant Growth
Recent Export Inspections data revealed that a total of 423,785 MT (15.57 million bushels) of wheat was shipped during the week of May 15. This figure marks a 4.59% increase compared to the previous week and is 85.06% higher than the same week last year. Japan was the primary destination, receiving 123,562 MT, while Mexico imported 72,551 MT. So far in the marketing year, exports have reached 20.702 MMT (760.7 million bushels), reflecting a 15.69% increase from the same period last year.
Crop Progress and Market Sentiment
Expectations for the upcoming Weekly Crop Progress report suggest that winter wheat crop ratings will remain steady at 54%. Additionally, the weekly Commitment of Traders data released on Friday showed that money managers in Chicago wheat futures and options increased their net short position by 13,161 contracts as of May 13. Their new net short position reached 126,895 contracts by Tuesday, the highest in nearly two years. In Kansas City wheat, they extended their record net short position by 8,559 contracts to a total of 80,799 contracts.
International Purchases Boost Demand
In other developments, South Korean mills purchased 50,000 MT of U.S. wheat overnight, while Saudi Arabia conducted a tender, acquiring a total of 621,000 MT of wheat.
Current Market Prices
Jul 25 CBOT Wheat: $5.26 3/4, up 1 3/4 cents
Sep 25 CBOT Wheat: $5.41, up 2 cents
Jul 25 KCBT Wheat: $5.21 1/4, up 4 3/4 cents
Sep 25 KCBT Wheat: $5.35 1/4, up 4 3/4 cents
Jul 25 MGEX Wheat: $5.82 1/4, up 9 cents
Sep 25 MGEX Wheat: $5.96, up 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 is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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