The wheat complex is back to near even after overnight weakness. Prices are within 3 cents of UNCH across the classes so far on the Thursday session. Front month wheat futures collapsed on Wednesday, with KC HRW leading the way, down 14 ¼ to 28 ¼ cents. Chicago SRW contracts were down 11 ¼ to 14 cents. Spring wheat futures were down 1 ¾ to 10 ¼ cents on the day. Pending options expirations on Friday and March futures delivery notices next week are driving liquidation of some stale longs.
The US markets weren’t the only ones under pressure, as French milling wheat futures fell 2.5% on Wednesday.
The USDA Ag Outlook Forum had wheat area at 49.5m acres, the most since 2016, and the 3-crop (c-s-w) total acreage was shown to increase about 6m to 228, the highest since at least 2016. showed US wheat ending stocks projected7% higher yr/yr to 608 mbu for 23/24. That was a modest loosening vs. the pre-report consensus near 650 mbu.
Egypt’s tender for April 1-15 shipment was filled by 240,000 MT of Russian wheat. Turkey is tendering for 790k MT of milling wheat.
Mar 23 CBOT Wheat closed at $7.36 1/2, down 14 cents, currently up 1 1/2 cents
May 23 CBOT Wheat closed at $7.50, down 12 3/4 cents, currently up 2 cents
Cash SRW Wheat was $6.77 1/4, down 13 3/4 cents,
Mar 23 KCBT Wheat closed at $8.76, down 28 1/4 cents, currently up down 2 3/4 cents
Cash HRW Wheat was $8.37 3/4, down 27 1/2 cents,
Mar 23 MGEX Wheat closed at $9.14 1/4, down 10 1/4 cents, currently up 3/4 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.
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