Afternoon wheat: The weakness in the US Dollar combined with strong rallies in corn, beans and soymeal help support wheat
<div class=\"default-font-wrapper\" style=\"line-height: 1;font-size: 12pt; font-family: Verdana, Geneva, sans-serif;\"><p id=\"isPasted\" style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><strong><em><u><span style=\'font-family:\"Arial\",sans-serif;color:red;\'>Futures:</span></u></em></strong></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'>The USDA released their monthly Winter wheat crop condition reports for several states through the end of Jan late yesterday. Most were expecting conditions to worsen across the board, and we did see conditions fall in Neb, Okla, Colo and Illinois, but several states saw improvement, such as Kansas, Missouri, Montana, North Dakota and South Dakota. Granted, all states have seen their conditions fall since the end of Nov, but with wheat futures lower all night, it did not look as if this report was the influence in today’s wheat rally. It looked more as if we saw some short covering following the strong rallies in corn, beans and soymeal. The weakness in the US Dollar (more than one full point lower) also may have aided in the wheat strength today. </span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'> </span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'>Chicago March wheat started the night three lower and quickly settled into a range of trade of between one and four lower for most of the night before weakening into the morning pause and finishing the night eight lower. A bid surfaced once the day session began and futures steadily climbed, with the initial rally peaking at six higher. After a minor setback the rally resumed, with futures ultimately reaching twelve higher before closing two cents off the highs. </span><span style=\'font-family:\"Arial\",sans-serif;\'>March KC wheat started the night seven lower and quickly settled into a range of trade between four and eight lower for most of the night before weakening into the morning pause and finishing the night around nine lower. A bid surfaced once the day session began and futures steadily climbed, with the initial rally peaking at four higher. After a minor setback the rally resumed, with futures ultimately reaching eleven higher before closing two cents off those highs. </span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'> </span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><strong><em><u><span style=\'font-family:\"Arial\",sans-serif;color:red;\'>Headline news:</span></u></em></strong><span style=\"color:black;\"> </span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'>EU data shows that as of Feb 2, cumulative year-to-date EU soft wheat exports (marketing year started July 1) are 12.51 MMT. Meaning, EU wheat exports last week were 330 TMT. This time last year, total EU wheat exports were 19.76 MMT. Some countries (France, Bulgaria and Ireland) continue to be slow in reporting and updating data in all markets.</span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'> </span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'>Ukraine officials say southern growing regions have recently seen spring grain planting in the Mykolaiv and Kherson regions. Typical seasonal planting starts in the latter half of February.</span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'> </span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'>SovEcon projects 2024/25 Russian wheat exports of 42.8 MMT. They raised their 2025/26 marketing year wheat export forecast by 1.9 MMT up to 38.3 MMT.</span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'> </span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;\'><strong><em><u><span style=\'font-family:\"Arial\",sans-serif;color:red;\'>Export business around this week:</span></u></em></strong><span style=\"color:black;\"> </span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'>Jordan passed on all offers and did not make a purchase in their tender for up to 120 TMT of opt origin milling wheat. Seven companies were said to have participated, but it is unclear at what prices were offered. Last week Jordan bought around 50 TMT paying a reported $265.25/mt C&F. </span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'> </span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'>Feb 5 South Korean flour millers are in for around 50 TMT of US origin milling wheat. The grain is to ship over the LH April through the FH May.</span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'> </span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'>Feb 6 Japan is in with their usual weekly tender seeking a total of 96,725 mt of Canadian and US origin wheat. The total includes 32,180 mt of Canadian red spring, 31,630 mt of US HRW, 19,885 mt of US white and 14,260 mt of US DNS.</span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'> </span></p><p style=\'margin:0in;font-size:12pt;font-family:\"Times New Roman\",serif;text-align:justify;\'><span style=\'font-family:\"Arial\",sans-serif;\'>Feb 19 Bangladesh is back in for 50 TMT of milling wheat. They have several tenders still open, with some possibly taking a considerable amount of time before purchases can be confirmed. </span></p></div>