Spring wheat futures climb to two-year highs

Reading Time: < 1 minute

Published: June 9, 2017

, , ,

CNS Canada — Spring wheat futures in Minneapolis climbed to their highest levels in nearly two years during the week ended Friday, as weather concerns in major U.S. wheat-growing states provided support.

The nearby July contract on Thursday hit a session high of US$6.1775 per bushel, the strongest level for the front-month spring wheat contract since July 2015.

The contract was off that high by Friday’s close, but still strong at US$6.065 per bushel.

The U.S. Drought Monitor is showing ‘abnormally dry’ to ‘severe drought’ conditions across much of the spring wheat growing regions of the Dakotas, Minnesota, and Montana, while nearby forecasts remain hot and dry heading into the weekend. However, there is more moisture in the longer-range forecasts.

Read Also

Photo: Getty Images Plus

Alberta crop conditions improve: report

Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.

The U.S. spring wheat crop was rated as only 55 per cent good-to-excellent by the U.S. Department of Agriculture in its report for the week ended Sunday. That was down seven points from the previous week, and further reductions are expected in the next report given the continued heat.

The declining condition ratings are expected to cut into yields, further cutting into the already tight supplies of higher-quality, high-protein wheat available.

Canadian Western Red Spring (CWRS) wheat bids moved higher during the week posting gains of C$8-$10 per tonne, according to data compiled by PDQ (Price and Data Quotes).

— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

About the author

Phil Franz-Warkentin

Phil Franz-Warkentin

Editor - Daily News

Phil Franz-Warkentin grew up on an acreage in southern Manitoba and has reported on agriculture for over 20 years. Based in Winnipeg, his writing has appeared in publications across Canada and internationally. Phil is a trusted voice on the Prairie radio waves providing daily futures market updates. In his spare time, Phil enjoys playing music and making art.

explore

Stories from our other publications