Wheat Price Highlights: Highest Prices Since June
- U.S. wheat futures closed higher this week, reaching their highest prices since early June. Strong demand for high-protein U.S. wheat and lower estimated world supply supported futures. A USDA report showed lower HRW production, which supported KCBT contracts. The MGEX December contract added 22 cents to $7.46/bu. KCBT closed 19 cents higher at $7.50/bu and CBOT gained 4 cents to $6.87/bu. CBOT December corn fell 11 cents to $4.43/bu and CBOT Soybeans dropped 25 cents to $12.95/bu.
- The KCBT nearby contract closed higher than the MGEX nearby for the second consecutive week. Gulf basis levels for lower protein spring wheat increased due to higher demand, narrowing the HRW/HRS FOB price spread.
- USDA released its September small grain summary on Monday. It upped its total U.S. wheat production estimate from 57.4 MMT to 57.9 MMT, topping analysts’ predictions. Lower estimated HRW production was offset by higher production of every other U.S. wheat class.
- The Baltic Panamax Index rose from 1,800 last Friday to 1,914. Strong demand for vessels in the Atlantic supported the index.
- The US Dollar Index fell from 80.37 last Friday to 80.22.
The ICE Dec and Mar contracts gave back 160 and 87 points on the week, respectively, as last week’s inversion between the two contracts gave way to partial carry. Well,