Wheat futures saw gains across all major markets on May 12, with Chicago SRW, Kansas City HRW, and Minneapolis spring wheat all closing higher. The Chicago SRW contracts rose by 10 ¾ to 15 cents, while Kansas City HRW increased by 8 ½ to 12 ¼ cents. Minneapolis spring wheat ended the day up between 5 and 10¼ cents.
The rally comes as new Crop Progress data shows that the U.S. spring wheat crop is now at 53% planted, slightly ahead of the five-year average. Emergence was reported at 23%. Winter wheat is also progressing rapidly, with heading at 61%, which is significantly above normal levels. However, condition ratings for winter wheat have declined by three percentage points to just 28% rated good or excellent, reflecting a shift toward poorer conditions.
Export Inspections released Monday morning indicated that wheat shipments for the week of May 7 totaled over half a million metric tons—an increase from both last week and the same period last year. South Korea received the largest share of these exports. The total marketing year shipment now stands more than twelve percent higher than last year’s pace.
Market participants are awaiting Tuesday’s release of the May World Agricultural Supply and Demand Estimates (WASDE) report, which is expected to show old crop stocks down eight million bushels from previous estimates according to a Bloomberg survey. New crop projections will also be provided alongside updated production figures for winter and all-wheat varieties.
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As market volatility continues due to changing weather patterns and shifting global demand for U.S. grains, industry observers are closely watching government reports for further indications about supply levels heading into summer.
