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.
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.