Spring wheat futures on the Minneapolis Grain Exchange closed mostly higher on Friday after reaching a fresh multiyear peak on a bullish US spring wheat acreage estimate, traders said. Nearby months at times traded up the 30-cent daily trading limit.
But a sharp sell-off in Chicago Board of Trade wheat and corn limited the Minneapolis market's advances. July spring wheat settled up 4 cents at $6.23 per bushel after surging to $6.49, the highest spot spring wheat price since 1996. September ended up 2-1/4 at $6.24-1/4 and December rose 1-1/2 cents at $6.32.
Most months hit contract highs. Volume was estimated by the exchange at 6,726 contracts. At the CBOT, July wheat tumbled, staging a key reversal after gains.
July settled down 27 cents at $5.82 per bushel, while July corn ended down 10 at $3.29-1/2. Kansas City July wheat fell 3-3/4 cents to close at $5.96-1/2.
Minneapolis wheat soared after the US Department of Agriculture reported US spring wheat area at 13.144 million acres, below the average trade estimate of 13.899 million. "Spring wheat acreage is down and there was clearly a weather problem," Greg Wagner of Horizon Age Strategies said at a Chicago Board of Trade panel.
The US figure comes on the heels of a drop in Canadian wheat seedlings announced this week, which was also supportive to the market. USDA pegged US all-wheat plantings at 60.505 million acres, above the average analyst estimate for 60.382 million. USDA put durum wheat acreage at 2.225 million, above the average trade estimate of 2.072 million.
Wheat futures had additional support from continuing harvest delays due to rain in the southern US Plains, and also surging European values. Also, there were no deliveries against the Minneapolis July spring wheat contract on first notice day. French milling wheat futures set record highs on diminishing European crop prospects.
USDA reported June 1 wheat stocks at 456 million bushels, above the average analyst estimate of 419 million. After the close, fresh export demand emerged. Egypt said it was seeking 55,000 to 60,000 tonnes of US, French, Australian, German, Argentine and/or Kazakh wheat for shipment July 23-31 and August 1-10. Tender results were expected on Saturday and could shape calls in MGE wheat on Monday.