Wheat Continuing Higher into Wednesday

Wheat markets are trading with another 6 ½ to 7 ½ cent gains in Chicago heading into midweek’s day session. The front month wheat futures market continued the strength through Tuesday with another round of gains. March Chicago wheat was up by 10 ¾ cents, and now sits 29 cents off the low. KC wheat prices were up by a nickel across the front months. Spring wheat futures were up by 2 ¾ to 3 cents at the close. 

USDA reported another 198k MT SRW sale to China on Tuesday for 2023/24 delivery. Egypt’s GASC bought 120k MT of Russian wheat at $255/mt FOB, $278.25/mt CF with payment via 270 day letters of credit and another 60,000 MT from Ukraine at a reported $250/mt FOB, $269/mt CF with immediate payment. Expected shipment is from late Jan-24 to early Feb-24. 

Ukraine reported that 7 MMT of cargo has been shipped via the Odesa port since August 8th, when the Navy initiated their own export corridor. Of that, 5 MMT was listed as grain. The port has also welcomed 226 ships safely during the same time. 

ABARES raised their Aussie wheat crop by 100k MT to 25.5 MMT citing recent rains but raising concerns regarding late season quality degradation. 

USDA’s monthly S&D reports on Friday are expected to show the US wheat carryout 100k bushels looser to 684.1 mbu, basically a rounding error vs. unchanged. The global situation is expected to loosen by 200k MT on average. 

Dec 23 CBOT Wheat  closed at $6.20 3/4, up 25 cents, currently up 25 cents

Mar 24 CBOT Wheat  closed at $6.31 1/4, up 10 3/4 cents, currently up 6 3/4 cents

Mar 24 KCBT Wheat  closed at $6.62 3/4, up 5 cents, currently up 4 1/2 cents

Mar 24 MGEX Wheat  closed at $7.39, up 2 3/4 cents, currently up 1 1/4 cents