The wheat complex experienced a bullish trading session on Thursday, with most futures contracts posting gains. Chicago Soft Red Winter (SRW) wheat futures traded steady to 4 ¾ cents higher across a majority of contracts. However, it was the Kansas City Hard Red Winter (HRW) futures that spearheaded the advance, climbing between 11 and 17 ¼ cents in the front months. Minneapolis Spring wheat futures also closed higher, adding 10 ¼ to 12 ¾ cents by the session’s end.
Export Sales and International Demand Bolster Market
Thursday morning’s export sales data provided a supportive backdrop for wheat prices. The report revealed that 100,318 metric tons (MT) of old crop wheat were sold in the week ending April 9. While this figure represents a 38.68% decrease from the previous week, it is notably up 31.14% compared to the same week last year. Key buyers included Nigeria, which purchased 52,400 MT, and Vietnam, with an order of 34,800 MT.
New crop business also contributed to the positive sentiment, with 131,000 MT tallied. South Korea was a significant buyer, acquiring 90,000 MT, while Mexico purchased 22,000 MT.
Tender Activity Signals Ongoing Global Needs
Further underscoring international demand, Taiwan’s mill importers issued a tender to purchase 105,950 MT of wheat from the United States, with the submission deadline set for the following Thursday. In separate tender activity, Algeria reportedly purchased an estimated 400,000 MT of durum wheat on Wednesday, indicating continued robust global requirements for the grain.
Contract Performance Highlights
The upward momentum was reflected in the closing prices of key contracts:
- May 26 CBOT Wheat closed at $5.98 ½, up 4 ¾ cents.
- Jul 26 CBOT Wheat closed at $6.06 ½, up 4 ¾ cents.
- May 26 KCBT Wheat closed at $6.42 ¾, up 17 ¼ cents.
- Jul 26 KCBT Wheat closed at $6.55, up 16 ½ cents.
- May 26 MIAX Wheat closed at $6.52 ¾, up 12 ¼ cents.
- Jul 26 MIAX Wheat closed at $6.67, up 12 ¾ cents.
The gains in the wheat complex on Thursday suggest that underlying fundamentals, including consistent export demand and international purchasing activity, are providing a solid foundation for price appreciation. Traders will continue to monitor export pace, crop development reports, and geopolitical factors that could influence global supply and demand dynamics in the coming weeks.
