Prices 7/3/17

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Wheat futures in the US were generally stronger in overnight trade, although there was some weakness in the spring wheat contract as old crop spreads begin to weaken and converge with new crop spreads. For example the spread from SRW futures to HWR and then to DNS futures is roughly $12.60 > $33.46 on the nearby contract versus $6.42 > $24.83 on the December contract. This does tend to indicate spreads for higher grade wheat are, at this stage, expected to shrink some as the year progresses.
Spreads to SRWW may improve though as drier weather creeps into the southern plains of the US.

Cash durum bids in North Dakota remain firm with the higher grade trading at US$320 / tonne. Further north in central Saskatchewan we see the 1CWAD13% price also flat at C$267 / tonne. Which on the face of it would appear a little low when compared to where cash bids in the north of the USA are at. Either way, at US$245 FOB Aussie DR1 is still the cheapest quality durum in the world.

The row crop futures market in the USA was generally flat as the two major grains, corn and soybeans, continue to compete for acres. It appears soybeans are currently winning that battle as weather problems in S.America continue to delay harvest in some parts of Brazil helping weekly US sales remain above what the punters were expecting to see thus supporting prices.

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