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Market Commentary

Closing Comment 05/16


Wheat futures closed higher on Wednesday. Wheat futures soared despite resistance from outside market factors. Calls for warm, dry weather across the US Plains continued to push prices upward as traders are concerned the winter wheat crop would be damaged. The CBOT contracts were up 5 percent, posting their largest gains in six weeks. CBOT July is 30 1/4 cents higher at $6.38 3/4; KCBT July is 28 1/2 cents higher at $6.56; and MGE July is 9 1/2 cents higher at $7.60.
Market Info

Current US winter wheat crop conditions better than 2011

USDA  |   January 17, 2012

Winter wheat crop conditions in the Central and Southern Plains are better this year than last year at this time. In the Central Plains, Nebraska’s winter wheat crop at the end of December 2011 rated 74 percent good to excellent and only 1 percent poor to very poor. A year ago at this time, 42 percent of the crop was rated good to excellent and 14 percent poor to very poor. In Kansas, 53 percent of the State’s winter wheat crop rated good to excellent and 9 percent poor to very poor. Last year at this time, 27 percent of the Kansas crop was rated good to excellent and 33 percent poor to very poor.

In the Southern Plains, Oklahoma’s winter wheat crop at the end of December 2011 rated 63 percent good to excellent and 7 percent poor to very poor. A year ago at this time, 37 percent of the crop was rated good to excellent and 19 percent poor to very poor. In Texas, 25 percent of the State’s winter wheat crop rated good to excellent and 38 percent poor to very poor. Last year at this time, 20 percent of the Texas crop was rated good to excellent and 45 percent poor to very poor.


 

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