Front month wheat futures have faded from their early session gains and are trading mixed so far at midday. CBT prices are down by 1 to 2 ½ cents. KC wheat is still mixed within 2 cents of UNCH. March HRS is holding onto a ¾ cent gain, though the deferred contracts are down by 1 to 1 ¾ cents.
USDA’s weekly Export Sales report had 322k MT of wheat bookings for the week that ended 1/25. That was a 29% decrease from the week prior, but “as expected”. Wheat commitments were up to 620.04 mbu, which remains 4.4% ahead of last year’s pace – though shipments trail by 9.6%.
Wire services are collecting trade estimates for next week’s USDA reports (Feb 8). Some are anticipating a 1.5 to 2 MMT increase in the Australian crop due to better than expected rains despite the El Nino weather pattern. Some are also cutting their EU wheat estimates. French Milling Wheat Futures posted a hook reversal higher on Thursday, encouraged by exporter inquiries that have been scarce since December.
The Buenos Aires Grains Exchange reported Argentina’s 23/24 wheat harvest finished with 15.1 MMT. That was 3 MMT below the forecasts at the start of the season but was a 24% recovery from the 22/23 drought afflicted crop.
Mar 24 CBOT Wheat is at $5.98 1/2, down 3 cents,
May 24 CBOT Wheat is at $6.07, down 2 1/2 cents,
Mar 24 KCBT Wheat is at $6.23 3/4, up 3 cents,
Mar 24 MGEX Wheat is at $6.95 1/2, down 1/2 cent,
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.
