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Kansas City wheat futures rose about 10 per cent in five trading days on weather worries, nearing contract highs last seen in mid-2017. The earlier spike was caused by extreme dryness in hard-wheat regions of the northern US and southern Canada.
Winter wheat was also short of subsoil moisture as crops came out of dormancy.
Dry conditions in the US hard red winter wheat belt threaten yields, which tightens supply and supports wheat prices. Feed buyers should expect firm wheat values while the weather risk persists.
graincentral.comHenry WellsMar 2, 2018After 1,072 past bullish weather events, WHEAT moved a median +0.2% over 5 sessions (55% higher; middle half -1.4% to +2.3%), and +0.3% over 20.
After 322 past bullish weather events, KWHEAT moved a median -0.1% over 5 sessions (49% higher; middle half -2.5% to +3.2%), and +1.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
