A combination of better than expected weekly export inspections and a cold snap in the USA has resulted in some good gains in US wheat futures. Technical support also helped, the punters had been looking for some good news after last week’s bearish USDA report. Hard red wheat futures were the standout, gaining 16c/bu (AUD$8.50/t) on the nearby contract.
Temperatures are around 5C – 7C colder than average right down into the Oklahoma panhandle. The spring wheat states and the central corn belt are feeling it the worst though with current temperatures as low as -10C across much of Illinois and Iowa as I write (3.00pm US). It should also be noted that conditions are becoming very dry across much of the HRW belt in the USA.
Weekly US wheat export inspections came in at 529kt, the trade were expecting a number between 300-500kt. The wheat market had been looking for some good news and jumped on this data and the weather scare helping it regain some of the recent losses. The rally does make US wheat even less competitive on the world market though.
Japan recently said it would be focusing more on Canadian and Australian wheat in its weekly tenders.
Durum wheat prices out of SW Saskatchewan remain relatively unchanged at C$267 ex farm. The US durum quality report is out. The results are not great with just 37% of the crop making the top two grades. Vitreous is the major concern with the average just 64%. The crop averaged 13.9% protein which average but less than last year’s dry season results. Drop me an email if you would like a copy.