Deteriorating winter wheat crop condition ratings in the USA saw all three US exchange traded wheat grades improve overnight.
Dry weather and a lack of snow cover across parts of the HRW belt and into the central corn belt saw crop ratings fall by up to 28% in Oklahoma. Kansas also saw a reduction in the good to excellent rating, down to 44% from 52% at the end of November.
There is talk of possible winter kill across parts of western Kansas but there is a good chance snowfall will occur prior to the next cold change thus protecting the crop from further damage and suppling a little moisture as well.
US winter wheat crop ratings during their winter are generally not a huge indication of the final crop. Good rain and mild temperatures during the thaw can improve wheat prospects there dramatically. The major impact is a cold snap or big frost event once the crop breaks dormancy in March or is filling grain in April.

US wheat futures saw gains of 12c/bu at both Chicago and Kansas. Some punters are suggesting the funds may invest heavily in HRW futures in the next few weeks. This is due to the fact many speculators see HRW as underpriced when compared to SRW and Spring Wheat values and with the addition of some volatile weather and dry conditions it may well be the next performer in the grains index.