The wheat complex saw significant gains on Thursday, with Kansas City HRW futures increasing between 10.5 to 29.25 cents, while Chicago SRW futures rose by 10 to 13.25 cents. The Minneapolis spring wheat also reported gains of 6 to 10.5 cents. Taiwan flour mills purchased 105,950 metric tons (MT) of wheat from the U.S., and Saudi Arabia issued a tender for 710,000 MT with a deadline set for Friday.
Weekly Export Sales data released on Thursday indicated old crop sales at 129,022 MT for the week of April 16, an increase from the previous week, with Japan being the lead buyer at 59,400 MT. In a concerning trend, the updated Drought Monitor shows that 70% of the U.S. winter wheat crop is currently experiencing drought, the highest level since 2023 and the worst for this time in the growing season since 2022.
Additionally, the International Grains Council adjusted its world wheat production estimate down by 1 million metric tons (MMT), while projected usage fell by 4 MMT. World ending stocks were raised by 8 MMT to a total of 284 MMT.
