Ray Grabanski, Progressive Ag
Wheat Matif wheat futures surged higher this week reaching $216.25 per metric ton on the September contract. The action in European wheat futures largely has the U.S. markets following. The Turkish currency plunged against the U.S. dollar which caused Russian wheat imports into Turkey to drastically decline. This backed off Matif wheat futures in August 8 and 9 trade.
Wheat World production cuts continued this week sending Matif wheat futures to highs last seen in 2014. Ukraine's wheat production is estimated at 24.1 million metric tons down from 27.8 million metric tons by a private firm. Poland estimated their winter wheat crop at 8.4 million metric tons, 16 percent less than a year ago. Germany is expected to harvest 18 million metric tons, down 25 percent from a year ago. SovEcon estimates Russian wheat exports at 35 million metric tons, 10 million metric tons less than last year and 5.1 percent from their previous estimate.
Wheat The wheat market experienced losses to open the week on news of weekend rains in the primary Russian wheat growing region. U.S. spring wheat conditions remained unchanged, with 80 percent of the crop rated good to excellent, 16 percent fair and only 4 percent poor to very poor. Ninety three percent of the spring wheat crop is headed compared to 85 percent for the five-year average.
Wheat The wheat complex started the week in the red in follow through selling to the June 29 quarterly report that showed spring wheat acreage at 13.2 million acres compared to the average trade guess of 12.41 million acres. All U.S. wheat acres came in at 47.82 million acres compared to the average guess of 47.12 million acres versus 47.34 million from the March intentions report.
Wheat The wheat market continued its downward momentum at the start of the week with Australia experiencing rainfall and export inspections continuing their dismal pace giving bears the upper hand. South Korea agreed to accept Canadian wheat June 26 after halting buying last year due to concerns over genetically modified wheat.
Wheat The wheat market continued its slide this week on greatly improved spring wheat condition ratings. Spring wheat conditions improved 8 percent to 78 percent good to excellent. Only 3 percent of the crop is rated poor to very poor. Spring wheat headed is at 9 percent compared to 12 percent for the five-year average. Winter wheat condition ratings improved 1 percent to 39 percent good to excellent. Twenty-seven percent of the winter wheat is harvested compared to 19 percent for the five-year average.
Wheat The wheat market experienced very choppy to lower trade this week. The U.S. Department of Agriculture's monthly World Agricultural Supply and Demand Estimates (WASDE) report showed lower than expected U.S. ending stocks, but slight increases in world ending stocks.
Wheat The wheat market experienced very choppy trade this past week with Kansas City contracts taking a 20 cent hit in June 4 trade. All contracts recovered for the week but would typically open strong daily only to fade and close near the lower end of the daily trading ranges.