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Spring wheat futures rose more than 3 percent as drought worsened across the Dakotas and into Montana, with extreme drought conditions spreading. Crop ratings fell to some of the lowest levels in over a decade, and Chicago winter wheat rose above $5 per bushel for the first time in a year.
Deteriorating crop ratings reduce expected wheat supplies and lift feed grain values. Continued dryness would sustain the upward price pressure.
cnbc.comJeff DanielsJun 30, 2017After 1,072 past bullish weather events, Wheat (SRW) 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, Wheat (HRW) 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.
Worsening Northern Plains drought and falling crop ratings on June 30 pushed Chicago winter wheat above $5, directly supporting SRW gains in the window.
