May 2018 Winter Wheat Prices Recap

This month, winter wheat prices found solid gains thanks to ongoing concerns about weather, crop quality, and available supply. Let’s look at winter wheat prices and how they performed in May.

Here’s a breakdown of the action on the contracts that we were watching for Chicago soft red winter wheat prices this month:  

  • May 2018: +13.6% or 61.5¢ to $5.125 USD / bushel
  • July 2018: +9% or 42¢ to $5.105 USD / bushel
  • Dec 2018: +8.1% or 40.8¢ to $5.473 USD / bushel
  • Mar 2019: +7.8% or 41¢ to $5.633 USD / bushel

 

Here’s a breakdown of the action on the contracts that we were watching for Kansas City hard red winter wheat prices this month:

  • May 2018: +11% or 51.2¢ to $5.185 USD / bushel
  • July 2018: +10.5% or 51.2¢ to $5.375 USD / bushel
  • Dec 2018: +9.2% or 49¢ to $5.788 USD / bushel
  • Mar 2019: +8.9% or 48.5¢ to $5.933 USD / bushel

 

Drought conditions in the Southwestern portion of the United States are currently at their worst levels in 60 to 70 years. It is still May, and we’re already hearing comparisons to the 1930s Dust Bowl. This has largely gone ignored by the mainstream press, which appears more focused on the Trump administration and its ongoing trade spat with the EU, China, Canada, and Mexico.

That’s just one topic that we covered this month. We also focused on:

 

We’ll be talking about what you can expect for winter wheat prices heading into June this weekend.

Be sure to sign up for a free 3-week trial at GrainCents as this month could be the most impactful for how and when you price your winter wheat for the rest of 2017/18 old crop supply, as well as a significant portion of your 2018/19 new crop production.

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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