Wheat Traders Revert Back to Selling
The wheat market gave back into the weakness on Wednesday, with all three exchanged fading back. SRW futures were down 8 to 9 cents at the close. KC contracts were 9 to 10 cents in the red at midweek, as contracts failed to hold the Tuesday gains. MPLS spring wheat was back to weaker trade on Wednesday, with losses of 2 to 4 cents.
USDA’s Export Sales report is expected to show between 250,000 and 500,000 MT in wheat sales during the week that ended on July 17.
Japan and the US agreed to a trade deal that was announced late on Tuesday. Tariffs will be set at 15% starting August 1. It also expects to boost rice imports by Japan, with Japan buying $8 billion in ag goods, though the White House fact sheet did not directly cite wheat. For reference, ag and related exports to Japan have historically ranged from $12 to 16 billion annually.
Day 1 of the spring wheat tour estimated the northern North Dakota area yield at 50 bpa, which is below the 52.5 bpa average for the same region last year. Day two results should be out later today.
Sep 25 CBOT Wheat is at $5.40 1/2, down 9 cents,
Dec 25 CBOT Wheat is at $5.61 1/4, down 8 1/4 cents,
Sep 25 KCBT Wheat is at $5.23 1/2, down 9 3/4 cents,
Dec 25 KCBT Wheat is at $5.46, down 9 cents,
Sep 25 MGEX Wheat is at $5.88, down 3 3/4 cents,
Dec 25 MGEX Wheat is at $6.09 1/2, down 2 1/4 cents,
On the date of publication, Austin Schroeder 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 Barchart Disclosure Policy here.