The US wheat market turned bullish on Friday and pulled the entire grain sector upwards. In Chicago, SWR wheat for May was up 17.00 US cents to 591.50 US cents/bushel. In Kansas City, HRW wheat for May climbed 18.25 US cents to 580.50 US cents/bushel. Spring wheat in Minneapolis also rose sharply and recorded double-digit gains, but without reaching a new high. Market participants pointed to pronounced short covering at the end of the month as the main driver of the momentum.
The latest export figures also provided a tailwind. At 22.998 million tons, US wheat exports are 14% above the previous year's level and reach 94% of the USDA forecast. This signals solid demand, even if the pace is slightly behind the five-year average.
Internationally, the focus is shifting to France. There, FranceAgriMer rates 84 percent of soft wheat stocks as good or excellent. This is four percentage points less than in the previous week. On Euronext, May jumped by €3.75 to €201.50 per tonne. The current focus is on the Iran conflict. Disrupted supply chains and general uncertainty about the course of events are fueling fears. Rising crude oil prices in particular are driving up prices.
