Wheat Prices Surge Amid Mixed Crop Progress Reports

The wheat complex experienced significant gains on Monday, with futures rising double digits across the three major markets. Chicago SRW futures increased by 11 to 12 cents by day’s end. Meanwhile, KC HRW futures finished with gains ranging from 13 to 15 cents in the front months. MPLS spring wheat also saw a rise of 11 to 12 cents in nearby contracts.

State Crop Progress Updates

Recent state Crop Progress reports highlighted varying conditions. In Kansas, winter wheat was rated at 52% good/excellent, with a Brugler500 index of 337. This represented a drop from the previous week when ratings were at 54% and the index was 344. In Texas, winter wheat ratings fell by 6%, bringing good/excellent ratings down to 28%, along with a decrease of 13 points in the Brugler500 index to 282.

USDA Export Inspections Report

The USDA Export Inspections report revealed a total shipment of 216,713 metric tons (7.94 million bushels) of wheat for the week ending March 6. This figure marked a substantial 44.65% decline from the previous week and was less than half of the same week last year. Mexico emerged as the top destination, receiving 139,200 metric tons, with 37,459 metric tons shipped. Year-to-date shipments in the current marketing year stand at 15.848 million metric tons (582.3 million bushels), representing an increase of 17.78% from last year.

Upcoming WASDE Report Analysis

The monthly WASDE report from the USDA is scheduled for release on Tuesday. Traders anticipate no major adjustments to the US ending stocks projection, with an average estimate of 797 million bushels, reflecting a modest 3 million bushel increase from the prior month. Expectations for worldwide data remain steady, with an average estimate suggesting a slight uptick of 0.04 million metric tons to 257.6 million metric tons.

Wheat Futures Closing Prices

Mar 25 CBOT Wheat closed at $5.45 1/4, up 11 1/2 cents.

May 25 CBOT Wheat closed at $5.62 1/2, up 11 1/4 cents.

Mar 25 KCBT Wheat closed at $5.65 3/4, up 14 1/2 cents.

May 25 KCBT Wheat closed at $5.78 1/2, up 13 3/4 cents.

Mar 25 MGEX Wheat closed at $5.90, up 12 cents.

May 25 MGEX Wheat closed at $6.04 1/2, up 11 3/4 cents.

On the date of publication, Austin Schroeder did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data contained in this article are strictly for informational purposes. For further details, please review the Barchart Disclosure Policy here.

 

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