For spring wheat prices, April 2018 was defined with significant speculation over delays to the pace of US planting. Frost and late-winter snowfalls kept the weather forecasts chilly, which ignited speculation that many farmers in the Northern Plains were prepared to switch out of spring wheat and turn to soybeans or other crops at the last minute.
The reports come at a critical time for the spring wheat crop, which was expected to surge in production. On Monday, April 30th, spring wheat prices surged as the USDA ended the month by providing an update on U.S. planting progress. The agency said that U.S. spring wheat farmers had planted 10% of the spring wheat crop by the end of April.
That number is 26 points back of the 5-year average and 20 points back from last year’s pace.
Here’s a breakdown of the action on spring wheat prices and contracts that we’re watching this month:
- May 2018: +6.8% or 39.3¢ to $6.178 USD / bushel
- July 2018: +4.9% or 29¢ to $6.155 USD / bushel
- Dec 2018: +4.2% or 25.5¢ to $6.325 USD / bushel
- Mar 2019: +4.3% or 26.3¢ to $6.448 USD / bushel
April was a very busy month for our analysts, as we covered daily market trading and turned our focus to a wealth of data that emerged from agencies and analysts around the globe.
This month we have talked about planting delays, the USDA and StatsCan reports, and US trade policy. Specifically, we have looked at:
- Spring wheat planting delays,
- Impact on spring wheat prices thanks to South Korea and Japan,
- Bearish Canadian spring wheat acreage reports from StatsCan;
- And what in the world is going on with the US trade policy?
Be sure to sign up for your free 3-week trial at GrainCents as this month could be the most impactful for how and when you price your spring wheat for the rest of 2017/18 old crop, as well as a significant portion of your 2018/19 new crop production.