Wheat prices recovered Wednesday as buyers snapped up contracts in an oversold market and are now looking to profit from a rebound in sentiment. The day was dominated by wheat’s more than 2% gains as corn prices and soybean prices were up marginally.
It’s difficult to say that prices have reached a bottom in the wake of President Trump’s ongoing tariff tantrum. With that in mind, let’s take a look at grain prices at the Chicago Board of Trade.
Wheat Prices Pop 2% in Chicago
In Chicago, July wheat prices added 10.5 cents to end the day a tick above $4.88. The September contract added 9.75 cents to end the day just above $4.99.
Down in Kansas City, HRW prices saw gains, though they weren’t as robust as their rival contracts in Chicago. The July HRW contract added 5.75 cents to close just under $4.89. The spread between Chicago and KC July contracts is now less than a penny.
Ongoing rain across portions of Kansas will likely delay harvesting in the state until next week.
Markets are preparing for tomorrow’s weekly export sales report from the USDA. The analysts’ range for new wheat crop sales ranges between 200,000 MT and 500,000 MT.
The September contract in KC gained 6.75 cents to close a tick under $5.06 per bushel.
Up in Minneapolis, July spring wheat prices added 3.25 cents to close just under $5.53. The September spring wheat contract added 2.75 cents to end the day above $5.63.
Soybean Prices Stop Slide – For Now
In Chicago, soybean prices stopped their weeklong slide with a small gain. The July contract added 0.5 cents to close the day at $8.895. The August contract gained 0.25 cents to close the day at $8.945. Though it’s hard to tell if the market has found a bottom, bargain buyers are starting to look under rocks.
Tomorrow, the USDA will report weekly export sales. The trade expectations for old crop sales range between 300,000 MT and 600,000 mt. New crop sales expectations range between 100,000 MT and 400,000 MT.
Corn Prices Tick Higher
July corn prices added 0.5 cents to close the day just above $3.54. The September contract gained 0.5 cents to close just below $3.64.
During a quiet day of data, the Energy Information Administration announced that weekly ethanol production hit its highest level since February. Weekly output came in at 1.064 million barrels per day. Higher demand pushed inventory levels down by 527,000 barrels to 21.65 barrels.
Tomorrow, markets will be closely eyeing weekly export numbers from the USDA.
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