Wheats Stayed Near their Limit Gains

Wheat prices were limit up overnight on the Russian invasion of Ukraine, with a limited morning pullback. By midday and into the close, wheat futures stayed near their limit gains for most of the session. CBT SRW prices ended 31 to 50 cents higher with both March and May going home locked limit higher – expanded limits for Friday’s session are 75 cents/bu. KC wheat closed 48 to 49 1/2 cents higher in old crop and 26 1/2 to 40 cents in the black. Spring wheat also rallied on the news, though prices went home 6 to 29 cents higher. March deliveries will begin with Monday’s FND. 

USDA’s Ag Outlook Forum set the preliminary wheat crop at 1.94 bbu this morning. That is up from the drought afflicted 1.646 bbu from old crop. Carryout was figured at 731 mbu, which is also above the current 648 mbu expected for 21/22. 

Traders surveyed going into the weekly Export Sales report are looking to see USDA report between 100k MT of wheat sales and 450k MT. New crop’s forward sales from the week that ended 2/17 are expected below 100k MT. 

Egypt’s GASC postponed their tender for wheat after receiving just one French offer amidst the overnight geopolitical developments in the Ukraine. Commercial shipping has been halted in the Sea of Azov due to the military activity there.  Some Black Sea vessels continue to move.

Mar 22 CBOT Wheat  closed at $9.26, up 50 cents,

Cash SRW Wheat  was $8.90 1/2, up 49 5/8 cents,

Mar 22 KCBT Wheat  closed at $9.63, up 49 1/2 cents,

Cash HRW Wheat  was $9.39 3/4, up 44 1/8 cents,

Mar 22 MGEX Wheat  closed at $10.30, up 29 cents,