
Wheat Futures Recover Modestly โ Smaller U.S. Acreage and Demand from North Africa Provide Support
๐ Wheat Futures Recover Modestly โ Smaller U.S. Acreage and Demand from North Africa Provide Support ๐
Wheat prices moved higher at the start of the week as markets responded to smaller-than-expected U.S. planting intentions and renewed export demand from Morocco and Egypt. While fundamentals remain fragile, lower acreage estimates and international interest provided a short-term lift.๐ 1. Market Overview: Exchange Prices & Trends
๐ Euronext and CBOT futures moved higher after hitting multi-month lows last week.
๐ 2. Key Market Drivers & Influencing Factors
๐น ๐ U.S. Wheat Planting Intentions Lower Than Expected
๐ The USDA's Prospective Plantings report showed:- 2025 wheat acreage estimated at 45.35 million acresโณ 2% down from 2024, and the second-lowest on record since 1919
- Winter wheat: 33.3 million acres (โ2% vs. Feb estimate, โ1% YoY)
- Spring wheat: 10.02 million acres (โ6% YoY, below 10.531m as expected)
- Durum: 2.02 million acres (โ2% YoY)
๐น ๐ฆ U.S. Grain Stocks Report Slightly Bearish
๐ The USDA reported:- Quarterly wheat stocks at 1.237 billion buโณ Slightly above expectations (1.215 bbu)โณ Up from 1.098 bbu last year
๐น ๐ France Sees Fresh Export Demand from Morocco and Egypt
๐ Traders reported interest in French wheat from North African buyers- French prices remain discounted to Russian wheat by $4โ6/t FOB
- Egyptian and Moroccan tenders added support to old-crop prices
๐น ๐ฆ U.S. Export Shipments Down, But Still Above Last Year
๐ USDA export inspections (week ending March 27):- 435,644 t shippedโณ 10.2% below last week, 13.5% below last yearโณ FY total: 17.29 million t, +16.4% YoY
๐น ๐ SovEcon Revises Russiaโs March Export Outlook Upward
๐ SovEcon now expects:- March 2025 wheat exports: 1.8 million tโณ +200,000 t from previous forecast
- February estimate: 1.9 million t,โณ down sharply from 4.8 million t in March 2024
- No significant barley or corn exports are expected in March
๐ฎ 3. Price Forecast (April 2โ4, 2025)
๐ Prices may remain range-bound until more export activity or weather risk emerges.
โ 4. 14-Day Weather Outlook โ Key Growing Regions
๐บ๐ธ USA โ Plains (Winter & Spring Wheat)
๐ Current: Some rain, improving planting conditions๐ Outlook:- ๐ก๏ธ Mild temperatures
- ๐ง๏ธ Rain forecast across spring wheat regions (esp. Minnesota, N. Dakota)
๐ท๐บ Russia & ๐บ๐ฆ Ukraine โ Black Sea Region
๐ Current: Soil moisture improving after March rain๐ Outlook:- ๐ง๏ธ Continued rain in southern Russia, Ukraine
- ๐ก๏ธ Warm weather favourable for winter wheat development
๐ 5. Market Data Highlights
U.S. Export Summary (Mar 27 week)
CFTC โ Fund Positioning (March 25)
๐ 6. Conclusion & Strategic Recommendations
๐ Key Takeaways:โ USDA acreage report triggered short-term price recoveryโ North African demand supports French wheatโ Russian exports lower YoY, but stable month-on-monthโ Stocks still large, weather improving โ bearish backdrop remains๐ Recommendations:๐น Producers: Stay patient, sell into any strength from demand headlines๐น Buyers: Consider forward coverage if North African demand accelerates๐น Traders: Monitor fund activity and watch for shifts in Russian export pace
๐ The wheat market remains range-bound โ upside limited by strong supplies, downside capped by reduced planting and emerging demand.
