Wheat Rallying on Tariff Delay
Wheat futures are rising across all three U.S. exchanges at midday Thursday. Chicago SRW is up 10-13 cents, KC HRW by 8-13 cents, and MPLS spring wheat by 8-9 cents. Weekly export sales reached 338,703 MT, up 25.9% from last week. January wheat exports hit a 52-year low at 1.313 MT. South Korea purchased 98,200 MT from the U.S. and Canada.
The wheat market is posting gain across the three exchanges at Thursday’s midday. Chicago SRW futures are 10 to 13 cents higher so far on the day. KC HRW futures are 8 to 13 cents so far across most front months. There were 26 deliveries against March KC wheat overnight. MPLS spring wheat is showing 8 to 9 cent gains in the nearbys.
Export Sales data indicated a total of 338,703 MT in wheat sales for the week ending on 2/27, in the middle of estimates of 225,000 and 450,000 MT. That was back up 25.91% from last week and 24.92% larger than the same week last year. New crop was above estimates of 0-75,000 MT at 77,000 MT.
The monthly Census data release showed January wheat exports at 1.313 MT (48.26 mbu), which was the lowest total for the month since 1972. That was a drop of 20.53% from last year and 9.4% below December.
President Trump is delaying putting a pause on all tariffs that fall under the USMCA umbrella from Mexico by a month. There has not been any mention of a reprieve on the Canadian tariffs, though previous statements have indicated there was an exemption likely.
South Korean importers purchased a total of 98,200 MT of wheat from the US and Canada, with 50,000 MT US specific.
Mar 25 CBOT Wheat is at $5.30 3/4, up 12 1/4 cents,
May 25 CBOT Wheat is at $5.59, up 10 3/4 cents,
Mar 25 KCBT Wheat is at $5.42 1/4, up 8 1/4 cents,
May 25 KCBT Wheat is at $5.69 1/4, up 12 1/4 cents,
Mar 25 MGEX Wheat is at $5.72 1/2, up 8 cents,
May 25 MGEX Wheat is at $5.96 3/4, up 8 3/4 cents .
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Source : Nasdaq.com
