RSS
Twitter
Linked In
News In
News
Linked In
RSS
https://twitter.com/Agrimoney
http://www.newsnow.co.uk/h/Industry+Sectors/Agriculture

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

US winter wheat deteriorates, opening up soft-hard divide

Twitter Linkedin eCard

The condition of the US winter wheat crop deteriorated further, taking it to a below-average rating, amid dryness testing in particular hard red winter wheat areas, expanding their divide to soft red states.

 

The US Department of Agriculture, in a much-watched weekly briefing, lowered by 2 points to 52% its rating of the proportion of US winter wheat rated “good” or “excellent”, undercutting market expectations of an unchanged reading.

 

The downgrade took the rating well below the 58% figure recorded a year ago, and a five-year average of 54%, on Agrimoney calculations.

 

And it reflected further deterioration in many Plains states growing hard red winter wheat, affected by drought, contrasting with improvement in some Midwest areas producing the soft red winter wheat traded in Chicago.

 

‘Dry weather prevalent’

 

In the Plains, the rating for Nebraska winter wheat dropped by 7 points to 56%, in a week which USDA scouts said was marked by “limited” rainfall and temperatures which in western areas averaged 6-7 degrees Fahrenheit above normal.

 

In Oklahoma, the second biggest winter wheat growing state, the rating fell 4 points to 37%

 

“Dry weather continued to be prevalent throughout the state,” USDA scouts said, adding that “drought conditions continued to expand.

 

“It has been 48 days since the western panhandle has seen at least a quarter-inch of rain in a single day.”

 

In Montana, the rating dropped 3 points to 36% of winter wheat seen as good or excellent, amid dryness which has left 42% of topsoil “short” or “very short” of moisture, up from 28% a year ago.

 

‘Progressing well’

 

By contrast, in the soft red winter wheat-growing region, Arakansas saw its winter wheat rating rise by 8 points to 61%.

 

In Illinois, the reading improved by 7 points to 61%, in a week marked by above-averaged rainfall, and with just 8% of topsoil deemed short of moisture.

 

Although the reading for Ohio, the top soft red winter wheat growing state, did drop by 2 points week on week, it showed an elevated rating of 86% nonetheless.

 

“Winter wheat is progressing well and the condition remains good to excellent,” USDA scouts said.

 

Price gap

 

Kansas City hard red winter wheat futures could only marginally reduce their premium to Chicago soft red winter wheat futures in early deals on Tuesday.

 

Kansas City wheat for December stood up 0.1% at $4.16 ¼ a bushel, while Chicago’s December lot was unchanged at $4.22 a bushel.

 

While Kansas City wheat, boasting a higher protein level, would typically see higher prices, values have been undermined by the extent of supplies still left over from the bumper 2016 harvest.

Twitter Linkedin eCard
Related Stories

Evening markets: Soybean futures gain, cotton prices jump on US data

Initial USDA forecasts for crop supply and demand for 2018-19 lift soy and cotton prices, but are not so well received in the cotton market

US soy exports to rebound to record top in 2018-19 - but corn, wheat volumes to fall

The USDA, in much-anticipated forecasts, sees a boost to soybean trade from Argentina’s woes. But corn, wheat exports face strong competition

Demand for US soybeans, soymeal tumbles, as prices soar

US export sales of soymeal hit a 2017-18 low, and those of soybeans turn negative. But in cotton, buyers step in as prices fall

World wheat output to fall this year - but not barley, corn, rapeseed harvests

But corn stocks, like wheat inventories, look like declining over 2018-19, the IGC says, in its first forecast for the grain
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069