2/5/23 Prices
Russian rockets raining down on Ukraine, more and more punters expecting to see the Black Sea Grain Corridor deal abandoned, much of western Kansas and eastern Nebraska still in terrible drought, the Canadian prairies and US spring wheat belt seeing big sowing delays. What do US wheat futures do, well they fall lower of course.
The USDA weekly crop progress report was out after the close. Corn sowing is bang on the 5-year average of 26%. Soybeans are ahead of the 5-year average at 19% sown vs 11% average. Cotton is 15% planted vs 14% as the 5-year average. Sorghum sowing is also progressing nicely, 21% sown, Texas at 69% complete. Onto wheat, 25% of the US winter wheat crop is now in head, Kansas 11%. The total winter wheat crop conditions rating improved from 26% G/E to 28% G/E. Last week the G/E rating in Kansas was 14%, it fell 1% to 13% G/E this week…. move along, nothing to see here.
US spring wheat sowing pace is slow at just 12% in the ground as opposed to the average for this time of year being 22%. N.Dakota the main spring wheat state in the US is just 6% sown.
Sowing pace can improve dramatically week on week when given a chance, but delays in sowing date do take a toll on possible yield potential unless the season is forgiving.
Some punters believe France has basically cut off its nose to spite its face when they implemented a ban on the use of Phosphine gas. The use of Phosphine when shipping wheat to many N.African consumers is a requirement by many importers. The question now is, has France locked itself out of a 10mt market, or will the consumers yield and change requirements. Another example of bureaucracy gone mad from the EU.