Wheat Market Weakens as Futures Dip on Wednesday

Wheat market experiences further decline with Chicago SRW futures down 8-9 cents and Kansas City HRW contracts losing 4-6 cents. Traders await USDA's Export Sales data for future direction on prices.

Date: 27-03-2025

AI Rating: 5

Market Overview: The wheat market is experiencing notable weakness, with Chicago SRW futures dropping 8 to 9 cents at closing. This trend is mirrored by Kansas City HRW contracts, which saw losses ranging from 4 to 6 cents in the nearby contracts. Further, MPLS spring wheat has also continued its downward slide, with declines of 3 to 4 cents.

Upcoming Data Releases: Traders are anticipating the USDA’s Export Sales data, set to be released soon, which is expected to indicate sales for the 2024/25 cycle between 0-550,000 MT for the week of March 20. New crop wheat sales are predicted to total between 100,000 to 300,000 MT. These figures will be significant in determining future wheat prices and may influence investor sentiment regarding related stocks.

Weather Conditions: The next week is predicted to bring wet weather to much of the SRW region, primarily over the weekend and early next week, potentially affecting crop yields and therefore, supply dynamics. Meanwhile, central and southern Texas may experience limited precipitation for HRW.

Grain Stocks Report: Looking ahead, the NASS will report March 1 Grain Stocks data next Monday, with expectations roundly at 1.221 billion bushels of wheat on hand. The anticipated range for this figure is between 1.169 to 1.26 billion bushels. Significant deviations from these expected numbers may influence supply forecasts and, subsequently, wheat prices.

Conclusion: The current downturn in the wheat market and upcoming reports are critical for investors. A decreasing trend in wheat prices could suggest caution in investing in agriculture-related stocks while anticipating the market's response to forthcoming data.

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