KC Wheat Rallies Double Digits

Wheat futures closed in the black out of Easter Weekend. HRW futures led the way gaining double digits. CBT SRW settled up by 2 to 3 cents in the front months. The nearby HRW-SRW spread reached an unprecedented $1.97 1/2 cents, vastly different than when March ’22 saw a near $2 SRW premium after the Ukrainian invasion. Spring wheat futures were 2 1/4 to 3 1/2 cents higher at the close. 

The weekly Crop Progress report from NASS had 7% of the winter wheat crop headed as of 4/9. The 5-yr average would be 4%. Crop condition ratings converted to a 276 on the Brugler500 scale. That was down 3 points, mostly from Oklahoma. OK conditions were 17 points lower to a 250 on the Brugler500. In KS, the winter wheat ratings scored a 220, which was 10 points lower. The report also marked spring wheat planting at 1% complete. That trails the 4% average pace with WA at 11% finished compared to 33% on average. 

USDA announced 335,444 MT of wheat was exported during the week that ended 4/6. That was up from 168k MT last week and was 412k MT during the same week last year. White wheat shipments made up 110k MT of the total, leading the way. USDA reported Japan as the week’s top destination. The accumulated wheat export was reported at 17.195 MMT as of 4/6, trailing last year’s pace by 2.5%. 

Ahead of Tuesday’s WASDE report, survey respondents are looking for USDA to raise the U.S. wheat stocks by 8.5 mbu to 576.5 million. Global wheat carryout is estimated at 267 MMT on average, little change from March. 

The UN Food and Agriculture Organization expects the 23/24 global wheat crop will be 786 MMT, down 1.3% from this season’s output. 

May 23 CBOT Wheat  closed at $6.78 1/2, up 3 cents,

Jul 23 CBOT Wheat  closed at $6.90 3/4, up 2 3/4 cents,

Cash SRW Wheat  was $6.21 7/8, up 2 1/2 cents,

May 23 KCBT Wheat  closed at $8.76, up 11 1/2 cents,

Cash HRW Wheat  was $8.30, up 12 cents,

May 23 MGEX Wheat  closed at $8.75, up 3 cents,