Wheat futures are under pressure on Thursday, with Chicago SRW and KC HRW futures both down 9 to 11 cents following the USDA’s latest report, which revealed a higher-than-expected U.S. ending stocks figure of 938 million bushels. The USDA’s monthly WASDE update also indicated a global increase in wheat ending stocks, rising by 6.16 million metric tons to 283.12 million metric tons, driven by increased production in Russia and the EU.
Despite export sales for old crop wheat surpassing expectations at 163,950 metric tons, new crop sales fell short of forecasts, coming in at 90,656 metric tons against estimates of up to 400,000 metric tons. This mixed data highlights a potential oversupply scenario that could weigh on prices in the near term, particularly as traders adjust their positions in response to the USDA’s adjustments.
Market professionals should closely monitor these developments, as the increased stocks and mixed export data could signal further volatility in wheat prices, impacting related agricultural commodities and trading strategies.
Source: nasdaq.com