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Market Commentary

Morning Comments 05/21


The Crop Progress seemed to hold divergent implications for the wheat markets Monday afternoon. It showed the winter wheat crop deteriorated slightly from the week prior, whereas spring wheat plantings accelerated rather dramatically. Unfortunately for bullish interests, the negative implications of the speeding spring wheat results easily offset support for the winter wheat market. July CBOT wheat futures dropped 9.5 cents to $6.7575/bushel in early Tuesday morning action, while July KCBT wheat rallied tumbled 10.0 cents to $7.35, while July MGE futures sank 8.75 cents to $8.025.
Market Info

U.S. winter wheat conditions mixed

USDA  |   January 15, 2013
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Winter wheat conditions at the end of 2012 are not as favorable as last year for the Plains States that provide data about current crop conditions. Nebraska’s winter wheat crop, for example, has 49 percent rated poor to very poor and only 14 percent rated good to excellent. A year ago, only 2 percent of the State’s crop rated poor to very poor and 74 percent was rated good to excellent.

Winter wheat conditions are also worse this year than last in Oklahoma and Kansas. In Oklahoma, 61 percent of the winter wheat is rated poor to very poor while 11 percent is rated good to excellent. A year ago, only 7 percent of the Oklahoma crop was rated poor to very poor and 63 percent of the crop was good to excellent.

In Kansas, 31 percent of the winter wheat is rated poor to very poor while 24 percent is rated good to excellent. A year ago, only 9 percent of the Kansas crop was rated poor to very poor and 53 percent of the crop was good to excellent.

Two other reporting States, Montana and Illinois, are not that much different year to year. In Montana, only 8 percent of the crop rated poor to very poor and 40 percent rated good to excellent. A year ago at this time, the Montana crop had 9 percent rated poor to very poor and 30 percent rated good to excellent. In Illinois, only 2 percent of the crop rated poor to very poor and 70 percent rated good to excellent.


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