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CBOT SRW wheat rose 4.2% to $5.40/bu and KC HRW rose 3.7% to $4.76/bu after reports that China bought at least two cargoes of US HRW, its first US wheat purchases since 2017. Reports of US millers buying for flour production also supported prices.
Chinese purchases of US wheat support export demand and firm U.S. wheat prices, which can tighten the feed wheat spread versus corn.
spglobal.comMar 20, 2020After 431 past bullish trade events, Wheat (SRW) moved a median +0.0% over 5 sessions (50% higher; middle half -1.3% to +2.1%), and +0.5% over 20.
After 102 past bullish trade events, Wheat (HRW) moved a median 0.0% over 5 sessions (49% higher; middle half -2.0% to +3.5%), and -1.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
On 2020-03-20, reports of Chinese purchases of US HRW (first since 2017) plus US miller buying lifted KC HRW 3.7%, directly inside the 5-day window ending 3/22.
