International Wheat Market

26-Nov-2024 08:09 AM

International Wheat Market
The wheat market experienced a decline this week ahead of Thanksgiving, with all three major wheat futures markets seeing losses. Specifically, Chicago SRW futures dropped 7 ½ to 10 ¼ cents, KC HRW contracts fell 7 ¾ to 10 ¾ cents, and MPLS spring wheat prices decreased by 5 to 5 ½ cents. This drop marked a reversal from the previous week, which had seen a price increase due to concerns over the Black Sea conflict. The futures market has now shed most of the premium built up from these geopolitical concerns.

Regarding crop conditions in the U.S., the final USDA Crop Progress Report for November 24 showed that 97% of the winter wheat crop has been planted, and 89% has emerged. The crop's condition was rated 55% as good to excellent, reflecting a 6% improvement from the previous week. The Brugler500 index, which tracks crop health, increased by 10 points to 348, and has risen 35 points over the past five weeks, suggesting a favorable outlook for the crop.

On the export side, U.S. wheat exports have seen a significant jump. According to the USDA’s export inspection report, wheat exports for the week ending November 21 totaled 360,513 metric tons (13.25 million bushels), marking an 83.24% increase from the previous week and a 24.98% rise compared to the same week last year. Japan was the top destination, importing 138,621 metric tons, followed by the Philippines at 57,523 metric tons. For the marketing year, total wheat exports reached 10.69 million metric tons (392.65 million bushels), which is 31.15% higher than last year.