Front month wheat futures are trading red on Wednesday. Chicago futures are off their earlier lows, which led May to a 10c loss. Currently SRW futures are fractionally in the red. KC wheat is still down by 5 to 9 cents across the front month contracts. May futures are a nickel off their earlier lows. Midday spring wheat futures are 6 to 7 cents lower so far. September Minneapolis wheat is a 10 ¾ cent premium to May.
FranceAgriMer reported China cancelled purchases of French wheat on Wednesday.
Wheat FOB prices were recently showing French and German wheat to be the most competitive, from ~$5.60/bu. Russian offers were ~11c over that and U.S. FOB prices were 66c more for SRW and $7.41 for HRW.
NASA’s GRACE root zone soil moisture shows Northern Texas and SW Kansas are significantly better than this time last year, and that Central Texas / Eastern OK have moved to historically normal ranges. The PNW still has some scattered areas of concern, but is overall significantly better than last year. Last year at this time the ECB was sufficient to surplus in soil moisture, but this year most of the ECB is below normal with notable concerns for W. IL and MO.
CONAB lowered their Brazilian wheat production forecast by 0.6 MMT to 9.6 MMT, which, unlike corn and soybeans, is above the USDA WASDE figure (8.1 MMT).
Ukraine’s grain union projects their 2024 wheat crop will be the smallest in 12 years at 20 MMT. That’s down about 14.5% from last year, with constraints on land area and labor.
India’s Food Corporation estimates March wheat stocks have dropped to the lowest level in 7 years at about 9.7 MMT. They were 11.7 MMT a year ago.
May 24 CBOT Wheat is at $5.46 3/4, down 3/4 cent,
Jul 24 CBOT Wheat is at $5.60 1/4, down 1/2 cent,
May 24 KCBT Wheat is at $5.87 1/4, down 10 cents,
Jul 24 KCBT Wheat is at $5.79 1/2, down 8 cents,
May 24 MGEX Wheat is at $6.64 1/4, down 7 3/4 cents,
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Disclosure Policy here.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
