Wheat Falls on Lackluster Export Business
The wheat market weakened on Thursday, with Chicago SRW futures down 6-7 cents, Kansas City HRW contracts dropping 7-9 cents, and MPLS spring wheat falling 7 cents. A weak USDA Export Sales report showed reductions of 248,849 MT, below expectations. New crop bookings surpassed estimates at 491,092 MT. The IGC report increased 2024/25 wheat production by 2 MMT.
The wheat complex faced weakness on Thursday following a weak Export Sales report. Chicago SRW futures fell back 6 to 7 cents on the day. Kansas City HRW contracts were down another 7 to 9 cents on the Thursday session. MPLS spring wheat was down 7 cents in the front months at the final bell. Strength in the US dollar index continued to put some pressure on the market.
USDA Export Sales data from this morning showed a MY low at net reductions of 248,849 MT, well below estimates of net sales between 300,000 and 700,000 MT for old crop. Vietnam was the buyer of 69,500 MT, with Indonesia in for 62,000 MT. Panama cancelled 272,900 MT, with net reduction of 123,800 MT for unknown destinations. New Crop bookings were well above the estimated 25,000 to 100,000 MT, at 491,092 MT.
This morning’s release of the monthly International Grains Council report showed wheat production for 2024/25 up 2 MMT to 799 MMT, with stocks up 1 MMT to 265 MMT. The first look at 2025/26 estimates showed an 8 MMT increase in production yr/yr, but consumption increasing to take projected stocks down 6 MMT to 259 MMT.
May 25 CBOT Wheat closed at $5.57 1/4, down 6 1/4 cents,
Jul 25 CBOT Wheat closed at $5.73 1/2, down 6 1/2 cents,
May 25 KCBT Wheat closed at $5.86 1/2, down 8 1/4 cents,
Jul 25 KCBT Wheat closed at $6.01, down 7 3/4 cents,
May 25 MGEX Wheat closed at $6.04 3/4, down 7 cents,
Jul 25 MGEX Wheat closed at $6.20 1/2, down 7 cents,
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Source : Nasdaq.com
