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Commodity futures

US Wheat Futures Close Lower Amid Egypt's Preference for French Wheat

Strategic Insights

— 1 min read

The US wheat futures market witnessed a decline on Thursday, July 22, 2004, due to Egypt's decision to bypass American wheat and opt for French wheat instead. This move had a significant impact on the market, causing US wheat futures to fall despite the fact that weekly export sales exceeded expectations. The Chicago Board of Trade (CBOT) Sep wheat settled at $3.22 3/4, down 1 1/4 cents, while Dec was also down 1 1/4 cents at $3.36 1/4 a bushel.

Key Takeaways:

  • Egypt's decision to buy French wheat instead of US wheat had a bearish impact on the market, causing US wheat futures to fall.
  • Weekly export sales exceeded expectations, but the positive news was partially offset by the bearish news from Egypt's decision.
  • The CBOT Sep wheat price settled at $3.22 3/4, down 1 1/4 cents, while Dec was also down 1 1/4 cents at $3.36 1/4 a bushel.
  • Kansas City Board of Trade Sep wheat fell 2 1/2 cents to $3.55 1/4, and Minneapolis Grain Exchange Sep was down 2 cents at $3.73 1/2.
  • Egypt's General Authority for Supply Commodities bought two 60,000-ton cargoes of French wheat free on board in a tender, which disappointed the trade.
  • China was the major destination for US 2004-05 wheat exports, with a total of 126,500 tons sold in the week ended July 15.
  • The US Department of Agriculture reported that a net 428,000 tons of US 2004-05 wheat were sold in the week ended July 15, with wheat shipments totaled 726,000 tons, up 90% from the previous week.

Statistics:

  • US wheat futures closed lower by 1 1/4 cents to $3.22 3/4 on the CBOT.
  • Egypt bought two 60,000-ton cargoes of French wheat free on board in a tender.
  • China was the major destination for US 2004-05 wheat exports, with 126,500 tons sold in the week ended July 15.
  • Wheat shipments for the week totaled 726,000 tons, up 90% from the previous week and 65% above the four-week average.

Sources:

  • CEDAR FALLS, Jul 22, 2004 (ODJ via COMTEX) (Dow Jones)--U.S. wheat futures closed moderately lower Thursday...
  • By Tom Sellen News Provided by COMTEX (http://www.comtexnews.com)

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