Wheat Futures Steady in MPLS, Down in Chicago and KC Contracts

Wheat futures faded their Wednesday gains overnight and are trading steady to 6 cents lower this morning. Chicago prices were up 3.3% to 3.75% on Wednesday, which left the May contract a penny under the $8 mark. Buying interest was much more modest than that seen in corn and soybeans, with Chicago preliminary open interest rising only 2,878 contracts. KC wheat got back above the $8 mark on 3.5% to 3.6% gains. Spring wheat futures closed 2.9% to 3.6% higher with March having gained 32 3/4 cents.

BAGE estimated Argentina’s 2021/22 wheat crop at a record 21.8 MMT on a 3.44 MT/HA average yield. USDA’s Jan WASDE report pegged Argentine output at 20.5 MMT. 

While some buying interest is clearly tied to bets that Russian and/or Ukrainian wheat exports will be curtailed in the near future, we also note that Chinese internal demand is strong. The last two weekly government auctions were 100% sold, with buyers limited to only flour mills. 

Mar 22 CBOT Wheat  closed at $7.96 1/2, up 27 1/2 cents, down 6 ½ this morning

Cash SRW Wheat  was $7.56 1/8 on Wednesday, up 27 3/4 cents,

Mar 22 KCBT Wheat  closed at $8.00, up 27 1/4 cents, down 4 this morning

Cash HRW Wheat  was $7.82 5/8 on Wednesday, up 27 5/8 cents,

Mar 22 MGEX Wheat  closed at $9.39 3/4, up 32 3/4 cents, up ½ cent this morning