Glacier FarmMedia | MarketsFarm — United States wheat futures jumped during the week ended June 18, especially after short-covering in the market caused prices to rise more than 20 U.S. cents per bushel on June 18.
However, Bryan Strommen of Progressive Ag in Fargo, North Dakota cited multiple reasons for wheat’s gains: worsened crop conditions, conflicts in eastern Europe and the Middle East and excessive moisture affecting the winter wheat harvest in Kansas and Oklahoma.
“It’s too wet in some areas to get into the Delta and (other) southern parts of the (U.S.) as well,” Strommen said. “Even southern Minnesota had 13 inches of rain over the last four days in some areas.”
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Wheat growers in western North Dakota told Strommen their yields are 80 per cent of normal so far this year due to dryness. Meanwhile, soybean growers are waiting for favourable weather for its crop to “take off”, he added.
When the U.S. Department of Agriculture’s crop acreage and stocks reports are released on June 30, Strommen expects a mixed bag.
“Stocks might be a little tighter for corn. I think demand’s been good and stocks were tight going into this growing season,” he said. “Demand hasn’t been good for soybeans and wheat. We’ll see what numbers they come out with.”
Strommen added that tariff talks between China and the U.S. could affect grain prices, especially for soybeans, before the end of the month. Weather could also alter the trajectories for grain prices.
“Weather and then that report will play a big part over the next month,” he said.
Most U.S. markets will be closed on June 19 for the Juneteenth holiday.
