Wheat Complex Climbs as Market Conditions Shift

The wheat complex maintained its gains by the close of trading on Tuesday. Chicago SRW futures experienced increases of 4 to 5 cents across nearby contracts. Kansas City HRW futures also finished higher, with contracts rising 4 to 6 cents. Minneapolis spring wheat futures held steady, gaining 1 to 2 cents.

Weather Conditions and Crop Progress Update

This week, rain is moving out of the Southern Plains, resulting in drier conditions. However, the Southeast is anticipating heavier rainfall totals.

The latest weekly Crop Progress report indicated that spring wheat planting in Minnesota is lagging behind the average by 2%, while other states are progressing ahead of normal schedules. Winter wheat conditions were recorded at 51% good to excellent, which reflects a 2% increase compared to the previous year. The Brugler500 index remained unchanged during this ratings shift, standing firm at 334. Specific state ratings showed a decline in Kansas (down 4 points), Nebraska (down 7 points), and Texas (down 1 point). In contrast, states like Colorado (+14 points), Illinois (+9 points), and Oklahoma (+4 points) saw improvements.

Oklahoma Crop Tour and Export Data

An Oklahoma crop tour conducted by the Oklahoma Wheat Commission estimates the state’s winter wheat yield at 35.9 bushels per acre, predicting total production at 101.169 million bushels.

According to Census data, March wheat exports reached 1.799 million metric tons (66.1 million bushels), marking a modest increase of 1.94% from February but down 14.28% from the previous year. Cumulatively, marketing shipments have reached 17.686 million metric tons (650 million bushels), representing a three-year high through March.

In the European Union, soft wheat exports from July 1 to May 4 totaled 17.81 million metric tons, trailing by 9.17 million metric tons compared to the same timeframe last year.

Closing Prices

May 25 CBOT Wheat closed at $5.19, gaining 4 3/4 cents.

Jul 25 CBOT Wheat closed at $5.36, up 4 3/4 cents.

May 25 KCBT Wheat closed at $5.24 3/4, up 4 3/4 cents.

Jul 25 KCBT Wheat closed at $5.38, up 5 1/4 cents.

May 25 MGEX Wheat closed at $6.16 1/2, unchanged.

Jul 25 MGEX Wheat closed at $6.10 1/2, up 1 cent.

On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more details, please view the Barchart Disclosure Policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.