July 19: Wheat Prices Rise Thanks to Strong Export Demand

Wheat prices pushed higher on Thursday across the United States. Strong export demand and solid bargain buying helped drive prices up across the board. Let’s take a look at what happened today at the Chicago Board of Trade.

Wheat Prices Push Higher

Chicago SRW contracts for September added 9.75 cents on the day. The September contract closed above $5.04 per bushel. The December contract added 9.75 cents to end the day at $5.205.  

September HRW contracts in Kansas City added 8.75 cents to close just under $5.37. The December contract gained 8.5 cents to close the day at $5.215.

Today, the USDA reported net wheat sales of 300,000 MT for the new crop.

U.S. wheat exports totaled 434,700 MT for the week. That is the most substantial weekly figure of the marketing year so far and represents a 52% jump from the previous week. The chart below offers a glimpse of today’s report.

Wheat Exports Weekly

The top five destinations for U.S. wheat were the Philippines (122,300 MT), Japan (101,000 MT), Mexico (67,800 MT), South Korea (56,200 MT), and Brazil (28,000 MT).  

Spring wheat prices for September added 8.75 cents to close at 5.3675. The December contract added 8.5 cents to close just under $5.55.

Soybean Prices Find Small Gains

In Chicago, August soybean prices added 3.75 cents to close at $8.46 per bushel. The September contract added 4 cents to close at $8.52 per bushel.

Strong export sales offered some additional support today. The USDA said that net sales of the old crop came in at 252,300 MT for the week. That figure was a 59% jump compared to the previous week. New crop corn net sales came in at 613,400 MT thanks to a significant rise in sales to unknown destinations (433,000 MT).

For the week, export volumes came in at 605,200 MT.

That figure was an 18% drop from the previous week.

Soybean Weekly Exports

The top five destinations for U.S. soybeans were Mexico (119,800 MT), Indonesia (91,400 MT), the Netherlands (78,500 MT), Iran (71,400 MT), and Pakistan (66,900 MT).

September Corn Prices Tick Above $3.50

September corn contracts pushed back above that psychological level of $3.50 thanks to a 4-cent gain. The December contract added 4 cents to close the day at $3.65 per bushel.  

Weekly old crop corn sales came in at a net volume of 641,000 MT. That figure was a 59% jump from the previous week. We saw substantial sales increases in corn sales to Japan, Mexico, and Argentina.

New crop sales came in at 774,500 MT. Top sales came in from Mexico, South Korea, El Salvador.

The agency also said that total corn exports reached 1.293 MMT for the week. That figure represented a 7% decline for the week. The chart below offers a glimpse of weekly corn exports.

Corn Exports Weekly

The top five destinations for U.S. corn for the week Mexico (335,700 MT), Japan (211,400 MT), South Korea (129,800 MT), Peru (77,600 MT), and Saudi Arabia (76,300 MT).

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About the Author
Garrett Baldwin

Garrett Baldwin is a content strategist and editor at FarmLead. He covers the global grain markets and public policy issues related to the agricultural industry. He is a graduate of the Medill School of Journalism at Northwestern University. He also holds a Master’s Degree in Economic Policy from The Johns Hopkins University, an MS in Agricultural Economics from Purdue University, and an MBA in Finance from Indiana University.

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