Talk of some farmers bailing wheat in NW N.Dakota is preventing the wheat market in the US from correcting the percentage it probably needs to in order to be competitive on the world market again.
There are a few S&D tables getting around that show the world stocks situation on protein wheat getting extremely tight leading into the Australian harvest. We’ll know more soon though as more than half of the US spring wheat crop is now in head and the Canadian crop isn’t far behind it.
The N.Dakota durum crop saw a slight improvement in crop rating week on week, up from 24% G/E to 33%. This came as a little surprising to many but has taken the steam out of the durum bulls in the last day or so, for now anyway.
Temperatures are expected to climb into the high 30’s across much of the US Midwest next week and the driest parts are predicted to remain dry.
The next few days will probably consist of positioning ahead of the USDA report on Wednesday US time and closure of the July contract. This USDA report may hold a fair bit of weight in the market this time around. There is a lot of speculation on crops both in the US and around the world that are currently experiencing or have been through less than ideal conditions in June.