Wheat prices are bouncing off med/long term chart support with 3% gains so far to start the week. CBT futures are up by as much as 3.3%. KC HRW futures are gaining 15 to 18 ¾ cents. MGE futures are holding more firm with 8 to 9 cent gains across the front months. Preliminary open interest showed net new selling, rising 7,290 contracts on Friday. Spreads are firming, with China still on the hook for at least 55 mbu of SRW previously purchased and not shipped. However, current prices are not competitive with Russian or Ukrainian offers, so the market needs to do a balancing act. KC HRW futures closed 8 ¼ to 9 cents lower.
The weekly Export Inspections data had 380,774 MT of wheat exported for the week that ended 2/15. That was down 27k MT from the week prior, but was slightly higher vs the same week last year. Accumulated wheat shipments remain 17.5% behind last year’s pace with 12.09 MMT shipped.
Japan issued a regular tender seeking 116k MT of wheat from U.S., Canada, and Australia.
Russia’s Ag. Ministry lowered their wheat export tax 2.6% to 3,953 roubles/mt for the period ending Feb. 27th.
Mar 24 CBOT Wheat is at $5.79 1/4, up 18 3/4 cents,
May 24 CBOT Wheat is at $5.77 1/4, up 18 1/4 cents,
Mar 24 KCBT Wheat is at $5.86 3/4, up 19 1/2 cents,
Mar 24 MGEX Wheat is at $6.63 1/2, up 8 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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