We are entering the vital northern hemisphere growing duration. The next 2 months will mostly settle the most significant percentage of the worlds wheat crop. Our markets are based upon easy supply and need economics. More crops = lower cost, and less crops = greater cost.
So let’s take a look at the U.S.A..
The map listed below programs the private states portion of the crop which is thought about to be good/excellent.
A big percentage of the Midwest remains in bad condition. This is particularly the case for Kansas, which is very important as it produces a big percentage of the country’s winter season wheat crop.
The conditions map follows the present dry spell map relatively carefully, which is quite apparent.
The United States winter season wheat crop has a total good/excellent condition ranking of 31%, this is in fact somewhat much better than at the exact same time in 2015. At present, it is the 6 th least expensive ranking for this time of year.
The Kansas winter season wheat conditions are presently the most significant issue, with just 10% of the crop in good/excellent condition.
We can currently see this affecting wheat rates, with the Kansas wheat futures (greater protein) relocating to a strong premium, highlighting the issue that the trade has about this crop.