Wheat Market Experiences Wednesday Losses Amid Strong Dollar

Wheat prices fell on Wednesday with Chicago and Kansas City futures down, influenced by a stronger US dollar. Estimates for USDA export sales are pending, which could affect market sentiment moving forward.

Date: 20-03-2025

AI Rating: 5

Market Overview: The wheat market faced losses on Wednesday, with Chicago SRW futures declining by 1 to 2 cents, while Kansas City HRW contracts saw a more significant drop of 10 to 12 cents. MPLS spring wheat also experienced losses ranging from 2 to 4 cents.

Pressure on Prices: The strength of the US dollar index has been noted as a contributing factor to the downward pressure on wheat prices. A stronger dollar typically makes exports more expensive for foreign buyers, leading to reduced demand and potential further price declines.

USDA Export Sales Data: Release of the USDA Export Sales data on Thursday could significantly impact market behavior. Estimates suggest old crop sales could range between 300,000 and 700,000 MT, while new crop bookings are expected to be between 25,000 and 100,000 MT. Depending on the actual sales figures, this data could lead to volatility in wheat prices.

Future Acreage Estimates: According to an Allendale producer survey, the projected wheat planted acreage for 2025 is estimated at 45.863 million acres. An increase in planted acreage could indicate expectations for higher future production, influencing supply forecasts.

International Impact: Turkey's decision to allow duty-free wheat imports for milling into flour exports could also affect domestic markets and international trading conditions. This policy change could create more competition among exporters and could also influence wheat pricing strategies on a global scale.

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