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WHEAT MARKET UPDATE
by Jim Kulp
Minot Milling Flour Sales
The underlying factor driving the wheat market is record high worldwide wheat carryout for crop year 09/10.
The two-week planting delay for spring and durum wheat raised issues of reduced acreage and the real threat of late season frost damage, but the crops are seeing improvement.
Northern plains weather has been excellent since mid-June accelerating wheat growth, and the USDA June 30th acreage report actually showed higher than expected acres being planted.
Spring and durum wheat acres only declined 3% and 6% respectively from the high levels of 2008, while previous estimates anticipated 6% to 8% declines.
MGEX futures have declined $1.50 a bushel since early June wiping out almost all of the $2.00 increase from mid April to late May. The drop in futures prices has encouraged cash wheat offers which were lacking since April, especially in the durum wheat market.
With decent US carryout stocks in spring and durum wheat attention now must turn to US and Canadian production and the need for good heat days and occasional rains in July.
Maturation of the wheat crops in the US and Canada is key in determining price direction because of the threat of late August frost damage.
Contact Jim Kulp at
(215)925-3339 x116 |
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Visit us On-Line:
Our Sales Team:
Northeast & Mid-Atlantic:
Bill Stabert
Executive VP Sales
215-923-3141 X112
Walter Hoff
Regional Sales Manager
757-486-0092
Flour Sales Manager
215-923-3141 X116
Mid-West Sales:
Dean Lustig
Regional Sales Manager
West Coast Sales:
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