News

Michael

Apr 1, 2025

Wheat Futures Recover Modestly โ€“ Smaller U.S. Acreage and Demand from North Africa Provide Support

Wheat Futures Recover Modestly โ€“ Smaller U.S. Acreage and Demand from North Africa Provide Support

๐Ÿ“œ Wheat Futures Recover Modestly โ€“ Smaller U.S. Acreage and Demand from North Africa Provide Support ๐Ÿ“œ

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.




๐Ÿ“Š 1. Market Overview: Exchange Prices & Trends



๐Ÿ“Œ Euronext and CBOT futures moved higher after hitting multi-month lows last week.




๐ŸŒ 2. Key Market Drivers & Influencing Factors

๐Ÿ”น ๐Ÿ“‰ U.S. Wheat Planting Intentions Lower Than Expected

๐Ÿ“Š The USDA's Prospective Plantings report showed:
  • 2025 wheat acreage estimated at 45.35 million acresโ†ณ 2% down from 2024, and the second-lowest on record since 1919
  • Winter wheat: 33.3 million acres (โ€“2% vs. Feb estimate, โ€“1% YoY)
  • Spring wheat: 10.02 million acres (โ€“6% YoY, below 10.531m as expected)
  • Durum: 2.02 million acres (โ€“2% YoY)
๐Ÿ“Œ The lower acreage surprised the market and supported futures, especially spring wheat in Minneapolis.

๐Ÿ”น ๐Ÿ“ฆ U.S. Grain Stocks Report Slightly Bearish

๐Ÿ“Š The USDA reported:
  • Quarterly wheat stocks at 1.237 billion buโ†ณ Slightly above expectations (1.215 bbu)โ†ณ Up from 1.098 bbu last year
๐Ÿ“Œ Larger-than-expected stocks capped the upside from acreage news.

๐Ÿ”น ๐Ÿ“ˆ France Sees Fresh Export Demand from Morocco and Egypt

๐Ÿ“Š Traders reported interest in French wheat from North African buyers
  • French prices remain discounted to Russian wheat by $4โ€“6/t FOB
  • Egyptian and Moroccan tenders added support to old-crop prices
๐Ÿ“Œ Despite a stronger euro, Euronext gained on-demand hopes.

๐Ÿ”น ๐Ÿ“ฆ U.S. Export Shipments Down, But Still Above Last Year

๐Ÿ“Š USDA export inspections (week ending March 27):
  • 435,644 t shippedโ†ณ 10.2% below last week, 13.5% below last yearโ†ณ FY total: 17.29 million t, +16.4% YoY
๐Ÿ“Œ Export pace still strong on a seasonal basis, despite short-term dip.

๐Ÿ”น ๐Ÿ“‰ SovEcon Revises Russiaโ€™s March Export Outlook Upward

๐Ÿ“Š SovEcon now expects:
  • March 2025 wheat exports: 1.8 million tโ†ณ +200,000 t from previous forecast
  • February estimate: 1.9 million t,โ†ณ down sharply from 4.8 million t in March 2024
  • No significant barley or corn exports are expected in March
๐Ÿ“Œ A slower Russian export pace could tighten global wheat flows in Q2.




๐Ÿ”ฎ 3. Price Forecast (April 2โ€“4, 2025)



๐Ÿ“Œ Prices may remain range-bound until more export activity or weather risk emerges.




โ›… 4. 14-Day Weather Outlook โ€“ Key Growing Regions

๐Ÿ‡บ๐Ÿ‡ธ USA โ€“ Plains (Winter & Spring Wheat)

๐Ÿ“ Current: Some rain, improving planting conditions๐Ÿ“† Outlook:
  • ๐ŸŒก๏ธ Mild temperatures
  • ๐ŸŒง๏ธ Rain forecast across spring wheat regions (esp. Minnesota, N. Dakota)

๐Ÿ‡ท๐Ÿ‡บ Russia & ๐Ÿ‡บ๐Ÿ‡ฆ Ukraine โ€“ Black Sea Region

๐Ÿ“ Current: Soil moisture improving after March rain๐Ÿ“† Outlook:
  • ๐ŸŒง๏ธ Continued rain in southern Russia, Ukraine
  • ๐ŸŒก๏ธ Warm weather favourable for winter wheat development
๐Ÿ“Œ Weather outlook stabilizing โ€“ a key factor in limiting price rallies.




๐Ÿ“‰ 5. Market Data Highlights

U.S. Export Summary (Mar 27 week)

CFTC โ€“ Fund Positioning (March 25)




๐Ÿ“Œ 6. Conclusion & Strategic Recommendations

๐Ÿ“ Key Takeaways:โœ… USDA acreage report triggered short-term price recoveryโœ… North African demand supports French wheatโœ… Russian exports lower YoY, but stable month-on-monthโœ… Stocks still large, weather improving โ€“ bearish backdrop remains

๐Ÿ“Œ Recommendations:๐Ÿ”น Producers: Stay patient, sell into any strength from demand headlines๐Ÿ”น Buyers: Consider forward coverage if North African demand accelerates๐Ÿ”น Traders: Monitor fund activity and watch for shifts in Russian export pace

๐Ÿ“ The wheat market remains range-bound โ€“ upside limited by strong supplies, downside capped by reduced planting and emerging demand.
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