Wheat Market Rallys as Black Sea Concerns Drive Up Premiums
The wheat market is experiencing a rally as traders close out the week, with prices showing gains on Friday. The Chicago Soft Red Winter (SRW) contracts are up by 22 to 23 cents, while Kansas City Hard Red Winter (HRW) futures have increased by 25 to 26 cents.
The Minneapolis spring wheat market is also in rally mode, with prices rising by 13 to 17 cents at midday. Despite the US not picking up significant export business, concerns over disruptions on the Black Sea have driven up premiums for the market.
Data from Export Sales shows that wheat sales for the current marketing year are down 31% from the same week last year, with a total of 8.342 million metric tons (MMT) sold so far. This is behind the average export percentage and only accounts for 40% of the USDA's export projection.