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:
- African demand for Canadian wheat;
- Morocco trying to buy local wheat;
- What the size of the 2018/19 US wheat crop could be;
- Results of the 2018 US Wheat Quality Council’s crop tour;
- The state of the Canadian winter wheat crop; and
- And changes in U.S. trade policy and its expected impact on prices.
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.