June 2018 Winter Wheat Prices Recap

The month of June saw winter wheat prices decline thanks to ongoing trade tensions between the United States and the rest of the world. In addition, crop quality has ticked a bit higher in recent weeks despite drought conditions that plagued the crop earlier this year. A stronger U.S. dollar also continues to weigh against global commodities.

Winter wheat prices in the month of June were down, with Soft Red winter wheat losing 5% and Hard Red winter wheat dropping by 10%.

soft-red-winter-wheat-prices-recap

hard-red-winter-wheat-prices-recap

For our GrainCents readers, we’re watching a variety of factors that might affect winter wheat prices: 2 are bearish, 5 are bullish, and 7 are noise.

More simply, there is a lot of action in the market right now but there is not a lot that is actually moving winter wheat prices except for the White House. Thus, we continue to look closely at the American market, but also the one in the Black Sea, namely Russia, as it relates to oats prices. 

This month, for GrainCents readers, we delved deeper into topics such as:

 – Drought and weather issues in European wheat producing regions

 – Rising Russian wheat exports

 – A hike in the US inflation rate by the Federal Reserve

 – An uptick in global wheat stocks

 – Why you should ignore trade war talk and focus on uality

 – Canada’s GMO wheat woes

 – Stats Canada’s estimates for wheat acres in 2018/19

 – The USDA’s estimates for wheat acres in 2018/19

Heading into the second half of the year, buyers and sellers of grain need actionable insight to make sense of ongoing trade tensions, supply and demand factors, and market behavior. We’re going to see a few wild swings in prices as the summer months progress, and you owe it to yourself to stay on top of the markets.

That’s why we’re offering a free three-week trial to GrainCents, our exclusive sales recommendation service that holds a 93% success rate on getting farmers the best price possible. Sign up right here for your risk-free trial.

About the Author
Brennan Turner

Brennan Turner is the CEO of FarmLead.com, North America’s Grain Marketplace. He holds a degree in economics from Yale University and spent time on Wall Street in commodity trade and analysis before starting FarmLead. In 2017, Brennan was named to Fast Company’s List of Most Creative People in Business and, in 2018, a Henry Crown Fellow. He is originally from Foam Lake, Saskatchewan where his family started farming the land nearly 100 years ago (and still do to this day!). Brennan's unique grain markets analysis can be found in everything from small-town print newspapers to large media outlets such as Bloomberg and Reuters.

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