Morning Wheat Gains ahead of Memorial Day Weekend

AM wheat prices are 8 to 14 cents higher across the domestic classes this morning. Wheats were mixed at the close, as the hard red classes ended in the black to SRW’s fractional to 2 cent front month losses. KC Wheat was 1 1/2 to 5 3/4 cents higher at the close. MPLS spring wheat futures were 6 1/2 to 8 cents higher on the day. 

The USDA’s weekly Export Sales report showed old crop net cancellations of 45k MT in the week that ended 5/18.  Those are not unusual at year end as business that can’t be executed on time is rolled to the next year. Total 22/23 commitments were 18.841 MMT, or 692.3 mbu, with 2 weeks left in the season. Of that, 635.3 mbu had been shipped through 5/18. By class, old crop HRW shipments reached 174.8 mbu of the 220 expected, SRW shipments were 96.83 mbu of the 110 mbu expected, HRS sat at 190.5 of USDA’s 220, and white wheat exports were marked at 158.8 of the 200 mbu forecast. New crop wheat sales were 245k MT and near the low end of estimates. 

Russia’s IKAR raised their expected 2023 wheat output by 2 MMT to 86. Their new export potential is estimated at 44 MMT. The EU’s Copa-Cogeca estimates 2023 grain production at 277 MMT, up 4.6% yr/yr. Their soft wheat outlook is expected to increase 2.8%. 

Ukraine’s Ag Ministry reported the season’s grain export was 4.6% behind last year’s pace with 44.6 MMT shipped – including 15.3 MMT of wheat, an 18% decrease yr/yr. 

Jul 23 CBOT Wheat  closed at $6.04 1/4, down 2 cents, currently up 8 cents

Sep 23 CBOT Wheat  closed at $6.17 1/4, down 1 3/4 cents, currently up 8 1/4 cents 

Cash SRW Wheat  was $5.43 1/4, down 2 cents,

Jul 23 KCBT Wheat  closed at $8.18, up 5 3/4 cents, currently up 12 cents

Cash HRW Wheat  was $7.90 1/1, up 11 3/8 cents,

Jul 23 MGEX Wheat  closed at $8.05 1/2, up 6 1/2 cents, currently up 12 cents