Markets

Pre-Opening Wheat Market Report

July wheat was up 1 cent late in the overnight session. Outside market forces looked mixed. Traders see some rains expected for northern Kansas and into Nebraska over the near-term as negative, but a wetter forecast for the northern plains into the weekend might keep planting progress slow for the spring wheat crop. The weekly Crop Progress Report showed that just 36% of the crop was planted as of Sunday, compared to 22% last week and 78% last year. The 10 year average for this time of year is 75%. This is close to the lowest on record for this date, which was 31% in 1995. North Dakota is just 15% planted versus the 10-year average of 66%, and it matches the record low from 1995. The report also showed that 32% of the winter wheat crop crop was rated good/excellent as of Sunday, compared to 33% last week and 66% last year. The 10 year average for this time of year is 48%. Kansas is rated just 15% good to excellent versus 63% last year at this time. The weather in France is turning drier; there are just scattered rains in the forecast for the next few weeks. European wheat growing areas in general did not receive as much rain as anticipated over the weekend. April was one of the hottest and driest on record, and French officials are concerned. US weather concerns (dry in the south and wet in the north) helped drive the market sharply higher on the session early yesterday. The market drifted lower after the early surge but still managed to close moderately higher on the day. The market also found support from higher corn prices. Drier weather in the forecast for the southern plains and wetter weather for the northern plains were both seen as supportive forces. Producers see heavy rains forecast for North Dakota for later this week as especially worrisome with plantings already at a record slow pace. Weekly export inspections, released during the session yesterday, came in at 30.04 million bushels, which was close to trade expectations. There are 27.4 million needed each week to reach the USDA export forecast for the season. Japan is in the market for 206,741 tonnes at their weekly tender. Manitoba officials have indicated that planting progress remains slow. China sold 69,641 tonnes of feedwheat from state reserves, out of the 303,534 tonnes that were offered. Ideas that Russia and Ukraine will see a strong recovery in wheat production this year are seen as limiting to higher prices.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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