Wheat is showing mostly higher price action on Wednesday, with most contracts on the plus side in all three exchanges early but fading as we neared noon in Chicago. Chicago SRW wheat is mostly 4 to 5 higher, vs. down 3 to 4 cents at the close on Tuesday. Preliminary open interest in CBT was up 6,398 contracts on Tuesday. KC HRW futures are about a penny per bushel higher at midday on Wednesday, similar to Tuesday’s closes. MPLS spring wheat futures are fractionally higher.
President Trump announced a preliminary trade deal with Indonesia on Tuesday, reportedly including commitments to purchase $4.5 billion in ag products.
Wire reports from Europe indicate that OAIC in Algeria purchased up to 1 MMT of milling wheat on Tuesday. Exact quantities and origins are not announced, but shipment is for September and October. While France has historically been a supplier, Bulgaria and the Black Sea have been capturing much of the recent business. A Taiwan wheat importer purchased a total of 89,650 MT of wheat from the US in their tender overnight. FranceAgriMer estimates soft wheat ending stocks for the French wheat crop at 3.87 MMT, which would be above the 2.33 MMT from last year.
Sep 25 CBOT Wheat is at $5.42, up 4 cents,
Dec 25 CBOT Wheat is at $5.62, up 3 1/4 cents,
Sep 25 KCBT Wheat is at $5.23 1/4, down 1/2 cent,
Dec 25 KCBT Wheat is at $5.45 1/2, down 1/2 cent,
Sep 25 MGEX Wheat is at $6.00 1/2, down 3/4 cent,
Dec 25 MGEX Wheat is at $6.20 1/4, down 1 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.
