Wheat Market Recovers Losses, USDA Reports Strong Sales and Exports

The wheat market has rebounded, recovering all overnight losses across the three major exchanges. Chicago SRW futures have risen by 1 to 2 cents. Similarly, Kansas City HRW contracts have shown gains of 2 to 3 cents at midday, while MPLS spring wheat is trading with increases of 1 to 2 cents on Thursday.

On Wednesday, President Trump announced new tariffs that excluded Mexico and Canada while maintaining exemptions for all USMCA-compliant goods. Reciprocal tariffs are set to take effect on April 9, with Japan imposing a 24% tariff, South Korea at 25%, and the Philippines at 17%.

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According to the USDA’s Export Sales report, the week ending March 27 saw 339,986 MT of US wheat sales. This figure surpassed trade expectations, which ranged between net reductions of 100,000 MT and net sales of 300,000 MT. The sales represent a three-week high and are significantly higher than the same week last year. Ecuador emerged as the top buyer, purchasing 71,900 MT, followed by Japan with 59,300 MT. Notably, new crop sales accounted for 95,242 MT, falling within the anticipated range of 0 to 200,000 MT.

Data from February indicates wheat exports totaled 1.765 MMT (64.85 mbu), according to Census data. This figure reflects a 34.37% increase from January, although it is down 4.47% in comparison to the previous year. For the marketing year, total exports stand at 584 mbu (or 598 including products) over the first three quarters.

May 25 CBOT Wheat is currently priced at $5.40 1/4, showing a rise of 1 cent.

Jul 25 CBOT Wheat stands at $5.54 3/4, up 2 cents.

May 25 KCBT Wheat is at $5.71 1/4, up 2 3/4 cents.

Jul 25 KCBT Wheat is at $5.82 1/2, also up 2 3/4 cents.

May 25 MGEX Wheat is trading at $5.94, gaining 1 1/2 cents.

Jul 25 MGEX Wheat is at $6.09 3/4, with an increase of 1 3/4 cents.

At the time of publication, Austin Schroeder did not hold direct or indirect positions in any of the securities mentioned in this article. All information is provided for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

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