The double-digit jump in spring wheat prices on March 1 had many farmers wondering the same thing… where was that sort of bump in February?
Last month, the May spring wheat contract in Minneapolis closed up less than 1%. However, it took a last-day run on Wednesday to help push prices into positive territory.
Last month, markets were really more focused on winter wheat quality as the crop emerges out of dormancy. A lack of moisture and snow cover has many analysts concerned about winterkill, while forecasts suggest that we’re not going to see much improvement heading into the spring.
The spread between winter and spring wheat prices narrowed over the month, primarily due to the 8.7% jump in HRW contracts down in Kansas City and nearly 8% bump in Chicago SRW wheat. With that in mind, we did cover a series of stories highly relevant to the sector as we move into the spring months.
Spring Wheat Turns Focus to Other Factors
In February, we highlighted the fight for high-protein wheat, and the countries rising up to dominate more of the wheat market, in light of changing trade relations.
We also looked at:
• The lower 2018/19 production estimates due to dry conditions;
• Australian wheat protein and the threat to their wheat exports;
• The impact on exports from the signing of the TPP;
• Expectations for the Canadian wheat crop in 2018/19; and
• Rising wheat demand from Brazil and Indonesia.
The focus moving forward will center more on global trade, quality, and high-protein production from the Europe and Australia, and expectations for price premiums heading into the warmer months.
Be sure to sign up for for 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 supply, as well as a significant portion of your potential 2018/19 production.