Wheat Leading the Grain Rally on Wednesday Morning Black Sea Escalation

Wheat is trading with 15 to 22 cent gains across the three markets early on Wednesday. The wheat complex posted gains across the three exchanges at the Tuesday close. Chicago SRW contracts were up 4 1/4 to 9 3/4 cents on the day. Open interest was up 5,032 contracts, suggesting new buying interest. KC HRW futures were 7 1/2 to 11 3/4 cents higher at the close. OI rose 1,056 contracts on Tuesday. MPLS spring wheat were 4 to 5 ¾ cents higher to round out Tuesday trade. July futures expired on Tuesday.

Russian exports through the Kerch Strait are still limited following last week’s report of restrictions. Overnight, Russia struck several port locations in Odesa, Ukraine in retaliation to recent Ukrainian strikes on Russian tankers in the Sea of Azov. US strikes on Iran overnight also hit a wheat storage facility. 

NASS Crop Progress data showed 67% of the US winter wheat crop harvested by Sunday, 6% ahead of normal. The spring wheat crop was 72% headed, in line with the 5-year average pace. Spring wheat conditions were 58% gd/ex, up 1%, with the Brugler500 index 3 points lower to 351. Ratings in MT were back down 18 points, with ID and SD slipping 7. Improvement was noted in MN (+8) and ND (+6).

Taiwan importers purchased a total of 98,150 MT of wheat from the US overngiht. EU Wheat exports in the first 12 days of July have totaled 214,904 MT according to EU Commission data, down from 260,897 MT last year. 

Sep 26 CBOT Wheat  closed at $6.45, up 9 3/4 cents, currently up 18 1/4 cents

Dec 26 CBOT Wheat  closed at $6.59 3/4, up 9 1/4 cents, currently up 17 1/2 cents

Sep 26 KCBT Wheat  closed at $6.78, up 11 3/4 cents, currently up 22 1/2 cents

Dec 26 KCBT Wheat  closed at $6.92 1/2, up 11 1/4 cents, currently up 21 cents

Sep 26 MIAX Wheat  closed at $6.58, up 4 3/4 cents, currently up 15 1/2 cents

Dec 26 MIAX Wheat  closed at $6.78 1/4, up 4 cents, currently up 16 1/4 cents