Wheat Gets Double Digit Bounce from Export Sales Data and Profit Taking
Chicago, June 28, 2024 – Wheat futures rebounded on Thursday with Chicago contracts rising 16 ¾ to 19 cents, Kansas City up 12 to 12 ¾ cents, and Minneapolis spring wheat increasing by up to 14 ¾ cents. This surge followed the USDA’s export sales report, revealing 667,173 MT sold, surpassing estimates. Stats Canada’s report showed lower-than-expected wheat acreage at 26.64 million acres. The EU Commission adjusted wheat production estimates to 121.9 MMT, affecting export forecasts.
Wheat futures took a day off from the relentless selling, posting double digit gains ahead of the USDA reports on Friday. Chicago contracts settled 16 ¾ to 19 cents higher. Kansas City futures were up 12 to 12 ¾ cents. MPLS spring wheat was 12 ¾ to 14 ¾ higher after Canadian spring wheat acreage came in lighter than expected.
USDA’s Export Sales report was part of the reason for some of the shorts to cover, as low prices are trying to cure low prices. A total of 667,173 MT of wheat was sold in the week that ended on June 20, above the trade range 200,000 to 600,000 MT estimates. The lead buyer was unknown destinations at 148,000 MT, with 102,000 MT sold to the Philippines.
Stats Canada released updated planted acreage estimates this morning, with total wheat acreage at 26.64 million acres, shy of the estimated 27 million and down 1.1% from last year. Spring wheat acres were tallied at 18.9 million acres vs. expectations of ~19.1 million acres and down 2.8% from a year ago.
The EU commission sees EU wheat ending stocks for 2024/25 at 13.1 MMT, down from 13.5 MMT the previous month. Exports were the given reason, seen up 0.55 MMT to 31.65 MMT on the MY, as production is estimated up 1.7 MMT from the month prior to 121.9 MMT. The International Grains Council also released updated data, showing a 1 MMT increase to world carryout at 261 MMT, as a 1 MMT cut to production was offset by 3 MMT in cuts to use and trade.
Jul 24 CBOT Wheat closed at $5.59 3/4, up 18 1/2 cents,
Sep 24 CBOT Wheat closed at $5.79 1/2, up 19 cents,
Jul 24 KCBT Wheat closed at $5.92, up 12 cents,
Sep 24 KCBT Wheat closed at $5.96 3/4, up 12 1/4 cents,
Jul 24 MGEX Wheat closed at $6.10 3/4, up 14 3/4 cents,
Sep 24 MGEX Wheat closed at $6.18, up 14 cents,
Source Link : https://www.barchart.com/story/news/27092953/wheat-gets-double-digit-bounce-from-export-sales-data-and-profit-taking
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