Market Performance
As the clock ticks towards midday, wheat futures are losing steam after an initial surge on Thursday. Across domestic markets, trading shows a decline ranging from a fraction to 2 cents. Despite this setback, CBT futures retain a weekly resilience, marking a 14 ¾ cents gain. Meanwhile, KC futures maintain a positive trajectory, boasting a 13-cent increase on the weekly chart.
USDA Report
The latest data from the USDA’s FAS reveals an intricate tale. A notable 176k MT of wheat made its way to the export market in the week ending 3/14. However, the devil is in the details: while old crop bookings experienced a net reduction of 109k MT (including a substantial 264k MT cancellation from China), new crop bookings reached a promising 286k MT. This surge in new crop sales places the forward book at 803k MT, positioning it 20% ahead of the previous year’s pace. Old crop commitments, holding steady at 18.4 MMT, remain 3% above last year’s levels.
Global Demand
Japan’s Ministry of Agriculture joins the action, inquiring about 119,000 MT of food-quality wheat from the US, Canada, or Australia in its customary weekly tender. On another front, Egypt’s GASC secures 110k MT of wheat through a tender, opting for sources from Bulgaria and Romania.
Current Prices
May 24 CBOT Wheat is priced at $5.43, experiencing a downturn of 2 cents. Jul 24 CBOT Wheat follows closely at $5.59, down by 1 1/4 cents. May 24 KCBT Wheat is valued at $5.78 1/2, witnessing a 2-cent decrease. Jul 24 KCBT Wheat stands at $5.72 3/4, down by 1 cent. Lastly, May 24 MGEX Wheat sits at $6.55 1/2, rising marginally by 1/2 cent.
As of the publication date, Alan Brugler maintains no positions in the securities mentioned. All presented information serves purely informational purposes. For additional insights, please refer to the Barchart Disclosure Policy.
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