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Low domestic wheat prices have driven US winter wheat plantings to a record low, with the durum crop also expected to be very small. Cold weather and April hail threatened Southern Plains yields, and only 55% of the winter wheat crop was rated good to excellent as of May 3.
Record-low acreage and yield risk in the Plains point to a smaller US wheat crop, which could support wheat prices and reduce cheap wheat feeding options.
dakotamidland.comMay 7, 2020After 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.
Dated the same day as the move, it reports record-low winter wheat plantings, cold weather and April hail threatening Southern Plains HRW yields, and only 55% of the crop rated good to excellent, a supply-side tightening that supports HRW prices.
