Wheat Rallying Ahead of Extended Weekend

Heading into the three-day weekend, wheat futures are double digits higher looking to end the short week with gains. CBT SRW futures are trading back above the $8/bu mark with 15 to 19 1/4 cent gains. That has March a net 17 1/2 cents higher for the week. KC futures are up 20 to 22 cents for midday. MPLS spring wheat prices are 11 1/4 to 17 3/4 cents stronger for midday – with March setting at a net weekly move of 1/4 cents higher. 

Weekly FAS data had 478,122 MT of wheat sales for the week that ended 12/22. That was up 43% on the week and more than double the same week last year, as analysts weren’t expecting more than 450k MT going in. Japan and Mexico were the week’s top buyers, and Mexico added 33k MT for new crop during the week as well. Total commitments stood at 14.922 MMT as of 12/22, down by 6% from last year. New crop forward sales were 64k MT, trailing the forward sales into 21/22 by 21%. 

Argentina was 91.4% harvested for their 22/23 wheat crop according to BAGE. The Rosario Grains Exchange recently lowered their output forecast by 2.5% to 11.5 MMT citing the drought. USDA’s Dec WASDE had Argentina with a 12.5 MMT crop compared to 15.5 MMT in November and 22.15 MMT in 21/22. 

Russia’s Rosstat forecasted the ’22 wheat harvest there at 102.65 MMT. 

Mar 23 CBOT Wheat  is at $7.93, up 19 cents,

May 23 CBOT Wheat  is at $7.99 1/4, up 18 1/4 cents,

Cash SRW Wheat  is at $7.34 3/4, up 19 cents,

Mar 23 KCBT Wheat  is at $8.87 1/4, up 20 3/4 cents,

Cash HRW Wheat  is at $8.49 5/8, up 20 3/4 cents,

Mar 23 MGEX Wheat  is at $9.31, up 17 cents,