Wheat futures showed modest gains as the market heads into the long weekend, with Chicago SRW futures inching up by fractions to 2 cents, despite a weekly decline of 6 ¾ cents. Kansas City HRW futures also posted gains, though they fell 17 cents this week, while Minneapolis spring wheat rose by up to 4 ¾ cents. Meanwhile, crude oil surged by nearly $12 following President Trump’s address, which hinted at continued military action affecting the Strait of Hormuz.
The wheat export sales data released on Thursday revealed a marketing year low of just 23,521 MT for old crop wheat, compounded by significant cancellations from Mexico. Conversely, new crop sales reached a marketing year high of 272,839 MT, with Mexico emerging as the top buyer. This mixed export data underscores the volatility in the wheat market, influenced by geopolitical tensions and changing demand dynamics.
Market professionals should note the implications of low old crop sales against a backdrop of rising new crop interest, as this could signal shifting market sentiment and potential price adjustments in the coming weeks.
Source: nasdaq.com