Wheat prices are sitting at or near their overnight highs with 3 to 7 cent gains across all classes into the midweek market. After initial Turnaround Tuesday buying faded, wheat prices closed the day off their highs but still in the black. SRW futures had rallied as much as 13 cents at the day’s high, but prices closed fractionally to 2 cents higher. KC wheat futures went home on 2 3/4 to 3 1/2 cent front month gains and a very modest amount of risk premium for winterkill out of this week’s subzero Plains temps. Spring wheat contracts settled up by 4 1/4 to 7 3/4 cents.Â
The Grain Industry Association of Western Australia sees record wheat yields for the region. They recently upped the Western Australia wheat crop to 13 MMT from the 12.6 MMT going forecast (and a 1.1 MMT increase yr/yr). USDA had the total Australian wheat crop at 36.6 MMT in their December WASDE.Â
Crop insurance data from RMA suggests larger US winter wheat plantings, perhaps 34.5 million acres. IF, and that is a big IF with the dry HRW area and subzero temps, a trendline yield of 50 bpa could be attained, US production would be at potentially a 7 year high. Â NASS will release official Winter Wheat Seedings in January.Â
Mar 23 CBOT Wheat  closed at $7.50 1/2, up 2 cents, currently up 6 3/4 cents
May 23 CBOT Wheat  closed at $7.57 1/2, up 3/4 cent, currently up 6 1/2 cents
Cash SRW Wheat  was $6.91 ¾ on Tuesday, up 2 cents,
Mar 23 KCBT Wheat  closed at $8.47, up 3 1/2 cents, currently up 8 1/2 cents
Cash HRW Wheat  was $8.11 ½ on Tuesday, up 3 1/2 cents,
Mar 23 MGEX Wheat  closed at $9.16, up 7 3/4 cents, currently up 3 3/4 cents
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.
