Old Crop Chicago Wheat rally Projected

Published by David Tedrow on

Chicago May 2025 wheat is trading at the low end of our projected range. USDA expects the old crop (2024/2025) US  wheat carryout to increase 15%  compared to a year ago, but the world wheat carryout is estimated to decline about 9 million tonnes or  3%.

US Wheat Supply/Usage Balance (Million Bushels)
2022/23 2023/24 2024/25 Percent
Area Planted 45.8 49.6 46.1 -7%
Area Harvested 35.5 37.1 38.5 4%
yield 46.5 48.7 51.2 5%
Beginning Stocks 674 570 696
Production 1650 1804 1971 9%
Imports 122 138 130 -6%
Supply, Total 2446 2512 2798
Food 972 961 966 1%
Seed 68 62 64 3%
Feed and Residual 74 85 120 41%
Domestic, Total 1114 1108 1150
Exports 762 707 850 20%
Use, Total 1876 1815 2000 10%
Ending Stocks 570 696 798 15%
Avg. Farm Price ($/bu) 2/ $8.83 $6.96 $5.55 -20%
co/usage 30% 38% 39.9%
May Chicago Wheat Winter/Spring Price
range
High $8.08 $6.71 $7.00
Low $5.96 $5.24 $5.68
Data based data available in January 2025.

 

Our work suggests a winter/spring May wheat price range of $5.50 to $7.00. On 01/15/2025 May Chicago wheat was trading at $5.62.

Categories: Grains

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