Wheat Prices Surging with Vigor
At midday, front month wheat prices are showcasing formidable strength with double-digit gains, painting a bullish picture. Chicago futures are currently leading the charge, trading 12 ½ to 13 ¾ cents higher. Meanwhile, the Kansas City (KC) wheat prices are robustly working 10 ¾ to 11 ½ cents in the black. Minneapolis Grain Exchange (MGE) futures are not far behind with gains of up to 9 cents across the front months.
Global Wheat Market Trends
In the recent week that ended on 3/14, weekly wheat export shipments amounted to 302k MT. This figure, while slightly down from the previous week’s 467k MT, remains a vital indicator for market observers. Notably, the total shipment by class included 83k MT of Hard Red Winter (HRW) and 74k MT of Hard Red Spring (HRS) wheat. The USDA also made a significant addition of 63k MT to past reports, bringing the season’s total shipment to 13.74 MMT, reflecting a 15.6% lag behind last year’s export pace.
Moreover, Ukraine’s Agricultural Ministry reported a total of 32.4 MMT of grain shipments for the season-to-date, with 12.9 MMT of wheat in the mix. This marks a 9.4% decline from last year, although wheat exports from the region continue to outpace the previous year by 5%.
Strategie Grains, in its estimations, projected EU wheat output for the 24/25 crop at 121.6 MMT. However, a reduction of 1 MMT was announced, attributing the cut to excessive rains that could potentially impact production.
On another front, IKAR anticipates a healthy outlook for Russian wheat in the upcoming 24/25 period, with a projected output of 93 MMT and exports set to total 50 MMT. These forecasts hint at continued vibrancy in the Russian wheat market.
Market Price Snapshot
Current market prices stand as follows:
May 24 CBOT Wheat is trading at $5.40 1/4, up 11 3/4 cents,
Jul 24 CBOT Wheat is priced at $5.55, up 11 cents,
May 24 KCBT Wheat is at $5.76 1/2, showing an increase of 10 1/4 cents,
Jul 24 KCBT Wheat price is at $5.69 1/2, surging by 9 3/4 cents,
May 24 MGEX Wheat is currently at $6.54, marking a rise of 7 1/2 cents.
On the date of publication, Alan Brugler 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
