Wheat Rallies on Weaker Condition Ratings
On Tuesday, wheat futures gained across major exchanges: Chicago SRW rose by 6 to 11.75 cents, KC HRW increased by 11.75 to 13 cents, and MPLS spring wheat was up 9 to 12 cents. The USDA’s Crop Progress report showed 80% of the crop is planted, with 38% rated as good/excellent, down from last year. EU soft wheat exports have reached 7.26 MMT, below last year’s 10.9 MMT. Key December and March contract prices closed higher across exchanges, reflecting renewed market strength.
The wheat complex posted some recovered strength across all three exchanges on Tuesday. Chicago SRW futures were up 6 to 11 3/4 cents on the day. KC HRW contracts posted gains of 11 3/4 to 13 cents. MPLS spring wheat was 9 to 12 cents higher across the board.
The weekly Crop Progress report from NASS showed 80% of the crop planted, 4% behind normal, with emergence at 56% compared to the 61% average. The initial condition rating figure tallied 38% of the US crop in good/excellent categories which is down 10% from last year’s number. That translates to a 313 on the Brugler500 index, which encompasses all 5 USDA ratings, and is the second lowest initial rating on record. Initial KS ratings were at 317, with OK and TX at 285.
EU soft wheat exports have totaled 7.26 MMT as of October 25 since the first of July, according to the European Commission data. That is down from the 10.9 MMT from the same time last year. Algeria set a tender for Thursday deadline of at least 50,000 MT.
Dec 24 CBOT Wheat closed at $5.70 1/2, up 11 3/4 cents,
Mar 25 CBOT Wheat closed at $5.90 1/2, up 11 cents,
Dec 24 KCBT Wheat closed at $5.74 1/4, up 12 3/4 cents,
Mar 25 KCBT Wheat closed at $5.88 1/2, up 13 cents,
Dec 24 MGEX Wheat closed at $6.06 1/2, up 11 1/4 cents,
Mar 25 MGEX Wheat closed at $6.30, up 12 cents.
Source Link : https://www.barchart.com/story/news/29285995/wheat-rallies-on-weaker-condition-ratings
