Homepage / Investment / Wheat futures rally amid worsening three-state drought in key grain growing region
Deneme Bonusu Veren Siteler Deneme Bonusu 2024 Explore the Magic of WildCardCity Güvenilir Bahis Siteleri En İyi Kumar Siteleri Balıkesir Triatlonuna Avrupadan Ödül Tricks of the Aviator gambling establishment game by Spribe Çevrim Içi Kumar Siteleri “bonus” Yalanıyla Kandırıyor En Güvenilir Canlı On Line Casino Siteleri Xbetting-tips Com Uncovering the Abundant Tapestry of Ozwin Gambling establishment Evaluating Board Portal Providers Uncovering the Wealthy Tapestry of Ozwin On line casino Electronic Data Area Providers Evaluation Cobra Internet casino: Raising the Australian On the internet Video gaming Practical experience 4 Things to Search for in Safeguarded Cloud Safe-keeping Fastpay On line casino Australia – Simple and No-Taxation Wagering Web page officielle franзaise de Joka Gambling establishment The Software Development Universe Game Woo Internet casino – Enjoy Slot machine games around australia Ostdeutsche Biersorten What Are Virtual Data Rooms? Vitamin D Receptor Polymorphisms Revue du Casino BlackLabel Faktory, kterй ovlivnujн hodnocenн ceskэch online kasin How to Make the Most of Your Web Development Organization and Advertising Efforts L’essor des casinos en ligne en France Boost Meeting Efficiency With Boardroom Technology Developments WildJoker Casino WildCardCity On line casino – Guaranteed Australian Gambling Portal WildCardCity Casino – The Ideal On the internet Gambling establishment within australia Modern Technologies Produce Sharing Documents Online Faster and More Protect Free Virtual Info Room pertaining to Speedy Due Diligence A Review of Data Area Software For people who do buiness Five Board Bedroom Features Which will help You Acquire a More Productive Boardroom Electronic Systems To your Business Understanding Legal Terms and Laws in Today’s World The Laws and Contracts of Hollywood: A Sunset Blvd. Tale Legal Discussion Between Johnny Cash and Antonin Scalia Legal Insights: What Teens Should Know Legal Issues and Exceptions: What You Need to Know Legal Insights and Expert Analysis Celebrity Dialogue: Legal Matters in the 21st Century Famous Personalities Discuss Legal Issues The Boys in the Boat: Legal Advisors and The Quest for Legal Knowledge Understanding Legal Matters: Q&A on Criminal Law, Joint Ventures, and More Enticing Title The Departed: Understanding Basic Work Requirements and Legal Rights Youth Slang Blog Article Legal Insights: A Journey into the World of Law The Ins and Outs of Legal Matters: Everything You Need to Know Legal Insights and Trends: A Rap Guide Mysterious Legal Matters Unveiled Insights and Information: Understanding Various Laws and Regulations Famous People of the 21st Century The Circle of Legal Life The Intersection of Fashion Law, Legal Translation, and THC Oil: A Modern Legal Guide Legal Q&A: Understanding Joinder Federal Rules and More Understanding Legal Terms and Conditions: A Comprehensive Guide Understanding Legal Documentation in a Fun Way! Understanding Legal Aspects: From Islamic Law of Inheritance to Farm Law Protests Understanding Legal Rights: A Guide to Legal Regulations and Requirements Understanding Legal Guidelines and Agreements Famous 21st Century People in Conversation Mysterious Legal Matters Unveiled Legal Matters and Real Estate: A Conversation Between Cameron Boyce and Donald Trump Understanding Legal Expertise and Why It Matters Legal FAQs and Expert Services Understanding Legal Ramifications: Common Law Ontario Health Benefits and More The Ins and Outs of Legal Requirements: From FBI Academy Physical Requirements to Silver Lake Fishing Rules The Legal Underworld: Understanding the Significance of Laws and Rights Legal Conversations: A Dialogue Between Jon Jones and Chadwick Boseman Legal Beats: Bobcats, Real Estate, Babysitting, and More Legal Matters and Netflix VPN Diabolique: Legal Affairs and Deception Ben Shapiro and Eddie Van Halen Discuss Legal Matters Legal Aid and Other Legal Issues Q&A Famous 21st Century Personalities in Dialogue Youthful Blog Post Expert Legal Insights: Top 8 Law Firms in Australia, Quasi Contracts, and More! Youth Slang in Legal Matters Steps to make Your Mother board Room Even more Productive and Meaningful Choosing Data Rooms for Homework The Enigmatic World of Legal Affairs and Contracting The Mystery of Legal Matters Understanding Legal Mandates and Guidelines in the Business World Celebrity Dialogue: Legal Matters and Personal Names Legal Questions: Answered! Mysterious Legal Insights and Tips The Mysterious World of Legal Agreements Legal Lingo: Reviews, Agreements, and More Exploring Legal Education and Responsibilities: A Comprehensive Guide Unconventional Wisdom: A Dialog Between 21st Century Icons Mysterious Legal Matters Unraveled The Legal Maze: Navigating the Legal Landscape Dialogue between Jared Kushner and Vasyl Lomachenko Legal Matters: A Conversation Between Prince and Lionel Messi Get Clued In: The Legal Lowdown for Gen Z Famous People of the 21st Century Talk About Legal Matters The Enigmatic World of Legal Agreements and Terms Are You Breaking the Law? Unusual Legal Questions Answered Understanding Legal Services, Parental Responsibility Laws, and More Understanding Legal Agreements and Requirements

Investment

Wheat futures rally amid worsening three-state drought in key grain growing region

Wheat futures prices soared more than 3 percent on Friday as drought worsened in a key growing region.

“Wheat conditions are at some of the lowest ratings in over a decade,” said James Cordier, president and head trader at Optionsellers.com in Tampa, Florida.

A major drought in the Dakotas has caused spring wheat crop conditions to decline sharply in the past four weeks. That has lowered expectations for the spring wheat, a high protein grain used in artisan wheat foods like hearth breads, rolls and even pizza crust.

The U.S. Drought Monitor said Thursday that “much needed rainfall was unfortunately scarce over the [High Plains] region during the past week” and noted that a heat wave caused conditions to worsen in many areas. The monitor also showed “extreme drought” conditions expanding across the Dakotas and into Montana, which last year was the nation’s third-highest state for planted wheat acres.

“Wheat conditions in the United States started deteriorating in May and the beginning of June, and that began the rally,” said Cordier. “The chance for wheat conditions to improve in July and August seem very slim.”

September hard red spring wheat, which is traded on the Minneapolis Grain Exchange, rose about 3 percent Friday, a day after adding surging 5 percent. It is sitting at a three-year high and has soared more than 30 percent in the past month.

The Chicago-traded September soft white winter wheat, meanwhile, jumped more than 4 percent on Friday and reached a one-year high. For the week, the soft wheat contract is up about 9 percent.

“We’ve seen the small speculators coming in and buying Chicago wheat,” said Ted Seifried, chief marketing strategist with the Zaner Group in Chicago. “You also had a fairly large fund short position there, which they’re starting to cover a bit more aggressively now that we’ve broken out to the upside on the chart.”

A new crop progress report is scheduled for release Monday by the U.S. Department of Agriculture and could be another catalyst for higher prices, traders said.

“We’ll probably [see] conditions deteriorate again on Monday,” said Cordier. “So then the market rallies a little more next week, … but Thursday and Friday you probably might look to take profits on it.”

According to the June 26 USDA report, the ratings for spring wheat crop conditions were worse than analysts expected.

“Spring wheat crop conditions have dropped about 40 percent in the last four weeks,” said Seifried. “The crop is burning up and it’s not going to produce anywhere near what we were expecting.”

Still, Seifried said the fundamentals on wheat are still “pretty bearish from a global scale on Chicago wheat and even Kansas City wheat for that matter.”

Indeed, there’s still a big carry-over of unsold wheat from previous harvests, with the vast majority of it Chicago wheat, according to Seifried.

“Our carry-over is about half of what we plan to grow next year,” he said. “So we have about 50 percent of a normal crop in waiting just sitting there.”

By comparison, Seifried said there’s “just not a whole lot of very good quality wheat like the Minneapolis spring wheat. That wheat can really gain value very, very quickly and might have more upside potential.”

Wheat is the nation’s third-largest crop, after corn and soybeans, and the globally ranks as the second-most used crop for food, after rice.

Spring wheat is planted in April and May in the U.S. and typically harvested in August and September. The crop is most vulnerable to stress during its pollination stage in June and July.

Clearly, the continued ongoing drought conditions could represent further downside risk to yields at harvest. And experts don’t see any let-up in the unfavorable conditions.

“The heat continues to build across the nation’s midsection, and the prospects for rainfall across the drought areas of the Dakotas and Montana do not look very good over the next two weeks,” said Brad Rippey, a meteorologist at the USDA. In addition to above-normal temperatures, he said the outlook also is for below-normal rainfall for the next few weeks.

Source: Investment Cnbc
Wheat futures rally amid worsening three-state drought in key grain growing region

Comments are closed.