Wheat Facing Midday Weakness
The wheat market is holding weaker as futures trade through the Thursday session. Chicago SRW futures are 1 to 2 cents lower at midday. Kansas City HRW contracts are showing 1 to 2 cent weaker trade on Thursday. MPLS spring wheat is trading with 1 to 2 cent losses.
Rains in the forecast for parts of HRW country are keeping a lid on much upside movement.
Export Sales data from this morning showed a net reduction of 145,016 MT of wheat in the week of 4/17, within the range of estimates of between net reductions of 150,000 MT and net sales of 200,000 MT. That was the second lowest this marketing year. Vietnam was the buyer of 75,300 MT, with 37,000 MT to Nigeria. Unknown canceled 158,400 MT, with 75,800 MT in net reductions by Mexico. Sales for new crop totaled 371,712 MT, which exceeded the range of expectations (100,000 to 300,000 MT) in that week and was the second largest total for the marketing year. Mexico was the largest buyer of new crop at 112,000 MT, with 93,200 MT sold to Japan.
The European Commission estimates the EU wheat production totaling126.3 MMT in 20226, a slight drop from their previous estimate. Ending stocks are expected to total 10.7 MMT for 2024/25 (a 1.3 MMT increase from their prior estimate), with 2025/26 seen at 8.5 MMT, a 1.2 MMT increase.
May 25 CBOT Wheat is at $5.26 3/4, down 1 1/2 cents,
Jul 25 CBOT Wheat is at $5.42, down 1 1/2 cents,
May 25 KCBT Wheat is at $5.35 3/4, down 2 cents,
Jul 25 KCBT Wheat is at $5.48 3/4, down 1 1/2 cents,
May 25 MGEX Wheat is at $5.89 1/2, down 2 cents,
Jul 25 MGEX Wheat is at $6.05 1/4, down 1 3/4 cents,
On the date of publication, Austin Schroeder 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.