Double Digit Wheat Rally after Export Sales
The wheat futures rallied 1.8% to nearly 4% across the domestic classes on Tuesday. KC HRW futures led the way with 19 to 23 cent gains. Chicago futures were up by 11 cents. Spring wheat prices were 14 cents stronger at the close.
Reports on the wire showed South Korea booked 95k MT of wheat via tender from U.S. and Canada. Taiwan also purchased 109,325 MT of U.S. wheat via tender.
Estimates into the StatsCan Crop Production report show traders are looking for wheat output to come in at 31.1 MMT, between 29.3 and 32.3 MMT. Last year’s wheat production was 29.8 MMT, and USDA is currently using 31 MMT. By class, traders are looking for StatsCan to show 24 MMT for spring wheat and 4.1 for durum.
Crop Progress data from Monday afternoon showed 91% of the US winter wheat crop now emerged. Condition ratings improved 5 points on the Brugler500 to 338. This will be the last national report for the year, though some states will still publish weekly/monthly updates throughout the winter months.
Dec 23 CBOT Wheat closed at $5.43 3/4, up 9 1/2 cents,
Mar 24 CBOT Wheat closed at $5.72, up 11 cents,
Cash SRW Wheat was $4.75 5/8, up 11 5/8 cents,
Dec 23 KCBT Wheat closed at $6.13, up 23 cents,
Cash HRW Wheat was $5.47 3/8, up 5 1/4 cents,
Dec 23 MGEX Wheat closed at $6.94 1/2, up 10 cents,
Source Link: https://www.nasdaq.com/articles/double-digit-wheat-rally-after-export-sales
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