Wheat Rallies on Weather Risks to Start Week
Wheat futures surged at the week’s start, with Chicago contracts up by 16 ½ to 37 ½ cents, Kansas City seeing gains of 18 ¾ to 35 ¼ cents, and MPLS spring wheat futures climbing 21 ¾ to 28 ¼ cents. Dry conditions in the Southern Plains and concerns over the Black Sea crop boosted prices. The USDA reported 69% of the winter wheat crop headed, with conditions slightly down at 49% gd/ex. Spring wheat planting surpassed average rates. However, weekly exports dipped significantly, with only 205,612 MT exported, marking a 46.37% decrease from last week and a notable decline from the previous year’s figures.
The wheat complex started off the week with a rally. Chicago contracts closed the Monday session with 16 ½ to 37 ½ cent gains. Kansas City futures were in rally mode, as gains of 18 ¾ to 35 ¼ cents were across the board. MPLS spring wheat futures were up 21 ¾ to 28 ¼ cents across the MGE board. Weather as likely playing a factor, as the next 7 days remain dry for the Southern Plains. Russian and EU FOB prices have also recently climbed to a more competitive price with the US on the Black Sea crop concerns.
The USDA Crop Progress report from Monday afternoon listed 69% of the US winter wheat crop as headed, 12% ahead of the average pace as of Sunday. Winter wheat conditions were listed at 49% gd/ex, down 1% from last week and taking the Brugler500 index 1 point lower to 333. Spring wheat planting was at 79%, 14% above the 5-year average. Emergence was at 43%, 10% above the average pace.
The weekly Export Inspections report from the FGIS showed just 205,612 MT of wheat exported in the week that ended on May 16. That was down 46.37% from last week and is less than half of what was reported in the same week last year. The Philippines was the top destination of 64,099 MT, with 58,349 MT headed to Thailand, and 44,207 MT to Mexico. The cumulative export total this marketing year is at 17.87 MMT, down 6.8% from last year.
Source Link: https://www.barchart.com/story/news/26334944/wheat-rallies-on-weather-risks-to-start-week
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