Good weather has resulted in a strong wheat crop, and consequently wheat futures plunged to a 3-year low as harvest in the southern U.S. Great Plains States begins.
Precipitation was the major factor in the bumper yields, as there was four times as much rain in the last month than normal, according to National Weather Service data.
Wheat futures for July delivery fell 3.5 cents, 0.8 percent, to $4.3225 a bushel on the Chicago Board of Trade, after reaching $4.31 a bushel, the lowest price for a most-active contract since April 3, 2007.
With the growing number of wheat farmers around the world and bumper wheat crops, there continues to be little reason prices will increase going forward, and makes you wander why farmers continue to plant the grain, other than government subsidies.
Showing posts with label Spring Wheat Prices. Show all posts
Showing posts with label Spring Wheat Prices. Show all posts
Tuesday, June 8, 2010
Friday, June 5, 2009
Wheat | Durum Wheat Prices Rising Slower than Spring Wheat
Wheat Prices
Durum wheat hasn't followed the trend of its spring wheat counterpart, as it lages behind the higher prices spring wheat have brought so far this year.
Though some local cash durum prices have risen slightly they have not risen at the same level as spring wheat.
“Unfortunately durum hasn't enjoyed the same price increases as hard red spring wheat,” Olson said. “In fact, durum cash prices around the state are less than hard red spring wheat prices in some cases.”
Local cash bids for durum are anywhere from $6.75 to $7.25, which is just slightly higher than a couple weeks ago.
One of the major reasons spring wheat prices have appreciated so much recently is because planting is so far behind the usual pace. And although durum planting is also behind the normal pace, it is not as far behind as spring wheat.
In North Dakota, 69 percent of the durum crop has been planted compared to an average of 77 percent - just eight percentage points behind. Spring wheat in North Dakota, on the other hand, is 79 percent complete versus an average of 95 percent - a difference of 16 percent.
In one week, durum planting progress jumped by over 40 percent due to the good planting conditions the week of May 18-24.
In Montana, about 70 percent of the durum crop has been planted. That compares to an 84 percent average.
Olson pointed out that emergence for durum is also behind due to cooler than normal conditions this spring, but the recent warmer temperatures should help promote emergence and crop development.
The U.S. desert southwest durum crop is getting ripe and harvest is expected to begin soon.
“Right now about half the crop is mature,” Olson said. “There doesn't appear to be any major issues with that crop and we're expecting to see both good quality and good yields.”
To the north, Canadian producers are also experiencing a late planting season, but they have other concerns as well.
“In Canada there's actually some concerns that it's getting too dry in some of the major durum producing regions, so that obviously could impact planted acres and production,” Olson said.
In Europe, the only production concern is that wet weather and poor crop conditions have cut the estimate for durum production in italy from 147 million bushels to 127 million. North Africa has seen “near perfect growing conditions” so their production will be well above last year's levels, according to Olson.
U.S. durum exports lately haven't been overly supportive for prices either.
Wheat Prices
Durum wheat hasn't followed the trend of its spring wheat counterpart, as it lages behind the higher prices spring wheat have brought so far this year.
Though some local cash durum prices have risen slightly they have not risen at the same level as spring wheat.
“Unfortunately durum hasn't enjoyed the same price increases as hard red spring wheat,” Olson said. “In fact, durum cash prices around the state are less than hard red spring wheat prices in some cases.”
Local cash bids for durum are anywhere from $6.75 to $7.25, which is just slightly higher than a couple weeks ago.
One of the major reasons spring wheat prices have appreciated so much recently is because planting is so far behind the usual pace. And although durum planting is also behind the normal pace, it is not as far behind as spring wheat.
In North Dakota, 69 percent of the durum crop has been planted compared to an average of 77 percent - just eight percentage points behind. Spring wheat in North Dakota, on the other hand, is 79 percent complete versus an average of 95 percent - a difference of 16 percent.
In one week, durum planting progress jumped by over 40 percent due to the good planting conditions the week of May 18-24.
In Montana, about 70 percent of the durum crop has been planted. That compares to an 84 percent average.
Olson pointed out that emergence for durum is also behind due to cooler than normal conditions this spring, but the recent warmer temperatures should help promote emergence and crop development.
The U.S. desert southwest durum crop is getting ripe and harvest is expected to begin soon.
“Right now about half the crop is mature,” Olson said. “There doesn't appear to be any major issues with that crop and we're expecting to see both good quality and good yields.”
To the north, Canadian producers are also experiencing a late planting season, but they have other concerns as well.
“In Canada there's actually some concerns that it's getting too dry in some of the major durum producing regions, so that obviously could impact planted acres and production,” Olson said.
In Europe, the only production concern is that wet weather and poor crop conditions have cut the estimate for durum production in italy from 147 million bushels to 127 million. North Africa has seen “near perfect growing conditions” so their production will be well above last year's levels, according to Olson.
U.S. durum exports lately haven't been overly supportive for prices either.
Wheat Prices
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