Wheat Rallying Ahead of Export Sales Release
Wheat markets rallied on Friday ahead of the USDA Export Sales report. After Thursday’s losses, Chicago wheat closed down 10-12 cents but gained 7 cents in early trading. Kansas City futures fell 10-11 cents but rose 11 cents. MPLS spring wheat dropped 9-10 cents but increased 8 cents. Taiwan bought 96,850 MT of US wheat. Weather concerns in Russia and the US Southern Plains influenced market movements. Expected export sales range from net reductions to 450,000 MT.
Wheat is rallying into the Friday session ahead of the weekly USDA Export Sales report. After a month of solid gains, the wheat complex posted some selling on Thursday ahead of Friday’s month end. Chicago contracts were down 10 to 12 cents in the front months. Kansas City futures are down 10 to 11 cents so far. MPLS spring wheat is 9-10 cents lower in the nearbys.
Weather played a role in Thursday’s selling as rains are expected to sneak back into wheat growing regions in Russia and facilitate some replanting in frost damaged areas. Much of the US Southern Plains, as well as SRW country, is also expected to see precip over the next week.
Taiwan purchased 96,850 MT of US wheat in their tender that was due today for July/August shipment. Export Sales data will be released shortly, with the trade expecting net reduction of 100,000 to net sales of 100,000 MT for old crop during the week of 5/23. Old crop sales need to be shipped by May 31, a quick turnaround unless you’re just looking at destination switches. New crop sales are seen in the 200,000-450,000 MT range.
Jul 24 CBOT Wheat closed at $6.81, down 11 3/4 cents, currently up 7 cents
Sep 24 CBOT Wheat closed at $7.02 1/2, down 11 1/4 cents, currently up 6 3/4 cents
Jul 24 KCBT Wheat closed at $7.09 1/2, down 10 1/4 cents, currently up 11 1/4 cents
Sep 24 KCBT Wheat closed at $7.23 1/2, down 10 1/4 cents, currently up 11 cents
Jul 24 MGEX Wheat closed at $7.42, down 10 cents, currently up 8 cents
Sep 24 MGEX Wheat closed at $7.51 3/4, down 9 1/4 cents, currently up 8 1/2 cents
Source Link : https://www.nasdaq.com/articles/wheat-rallying-ahead-export-sales-release
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