Wheat Backing Off So Far on Thursday

Wheat prices are down by as much as 8 cents across the U.S. classes into the Thursday day session. Chicago futures settled 1 ½ to 3 ¼ cents lower yesterday. KC futures closed 7 to 9 ¾ cents in the red on Wednesday. The July HRW/SRW spread is now to a 21 ¼ cent premium. Minneapolis spring wheat futures were 8 cents weaker at the close. September Minneapolis wheat is a 9 cent premium to May. 

Pre-report estimates have wheat export sales ranging from 200k MT of cancellations to 550k MT of net new sales for old crop during the week that ended 3/7. Traders are also looking to see up to 100k MT of new crop wheat sales in the weekly report.

Wheat FOB prices were recently showing French and German wheat to be the most competitive, from ~$5.60/bu. Russian offers were ~11c over that and U.S. FOB prices were 66c more for SRW and $7.41 for HRW. 

Ukraine’s grain union projects their 2024 wheat crop will be the smallest in 12 years at 20 MMT. That’s down about 14.5% from last year, with constraints on land area and labor. 

 

May 24 CBOT Wheat  closed at $5.44 1/4, down 3 1/4 cents, currently down 7 1/4 cents

Jul 24 CBOT Wheat  closed at $5.58 1/4, down 2 1/2 cents, currently down 6 1/2 cents

May 24 KCBT Wheat  closed at $5.87 1/2, down 9 3/4 cents, currently down 6 3/4 cents

Jul 24 KCBT Wheat  closed at $5.79 1/2, down 8 cents, currently down 6 3/4 cents

May 24 MGEX Wheat  closed at $6.63 1/2, down 8 1/2 cents, currently down 4 1/4 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.

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