Wheat prices are UNCH to 4 cents higher across the domestic classes heading into the Friday day session. Following the announced export sale cancelation, the SRW wheat futures ended Thursday’s session fractionally to 2 ½ cents weaker. KC prices stayed in the black and rallied as much as 18 ½ cents. Spring wheat futures were also higher across the front months, going home up by 9 ¾ cents. Spread unwinding fueled much of the hard wheat buying.
USDA reported that Chinese buyers cancelled 130k MT of SRW purchases on Thursday. The weekly data showed 271,130 MT of wheat was booked during the week that ended 2/29. That was down from 327k MT the week prior but was similar to the same week last year. Of the week’s business, FAS showed over half of the total was HRS. HRS now accounts for 34% of the total old crop commitments. Meanwhile, HRW represents 18%, SRW represents 25%, and white wheat commitments make up 21% of the 667.4 mbu total.
The monthly Census data showed 1.45 MMT of wheat was shipped during January. That was an 18.4% decline yr/yr.
Ahead of the WASDE report, trader expectations average to see USDA to tighten wheat stocks by 200k bushels to 657.8 million. Some survey responses were for a cut of as much as 18 mbu and some were to see an increase of as much as 24 mbu. Global wheat carryout is expected to tighten by 1.3 MMT.
Egypt’s GASC canceled their import tender for wheat. Wire sources showed Algeria booked between 850k and 900k MT of milling wheat. Ukraine’s March grain shipments were already 774k MT according to Ministry data. That compared to 641k MT last year. Feb’s total was 5.8 MMT and +11.5% vs last year.
Mar 24 CBOT Wheat closed at $5.20 3/4, down 1/2 cent, currently down 1/2 cent
May 24 CBOT Wheat closed at $5.28 1/2, down 2 1/2 cents, currently up 3 1/2 cents
May 24 KCBT Wheat closed at $5.74 3/4, up 18 1/2 cents, currently up 1 cent
May 24 MGEX Wheat closed at $6.54 3/4, up 9 1/2 cents, currently up 1 cent
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