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News specific to inform, educate and assist ag retailers is delivered in this e-newsletter weekly each Thursday. Circulation is limited to only ag retailer/distributor management and employees.

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Market Commentary

Afternoon Comments 06/19


Wheat futures turned decisively higher Wednesday, with weather driven gains being exaggerated by a reduced acreage forecast. Talk that excessive moisture will curtail North Dakota acreage apparently supported prices, especially after a late report from a Memphis-based consultancy pointed in that direction. Forecasts for surprisingly hot, dry weather over the central U.S. later this month likely boosted futures as well. July CBOT wheat leapt 19.5 cents to $7.07/bushel at its Wednesday afternoon settlement, while July KCBT wheat rocketed 20.5 cents higher to $7.3975, and July MGE futures soared 14.5 to $8.135.
Market Info

Projected world wheat production down slightly

USDA  |   January 16, 2013
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World wheat production in 2012/2013 is projected down slightly by 0.8 million tons to 654.3 million. For Argentina, the wheat crop projection is reduced 0.5 million tons to 11.0 million.

With about 90 percent of wheat already harvested, both area harvested and yields are expected to be lower than previously forecast.

Heavy rainfall for more than 3 months in a row since October is expected to reduce harvested area and has reportedly led to outbreaks of fungal diseases that have further hurt yields.

In Russia, the government statistical agency reported that in 2012/13 wheat production, in so-called “clean weight” (which measures grain after it has been dried and cleaned of impurities), reached 37.7 million tons, down 0.3 million from last month’s forecast, and down 18.5 million tons on the year.


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