Active Spread Trade in Wheat Markets. Analyst Says
Succesful Farming – 08/09/2019
Wheat markets moved in choppy price action this week, with the main feature being spread action. Chicago surged higher against Kansas City, pushing into new highs. Chicago wheat lost to corn just a few cents. So, of course, Kansas City really lost to corn, with front months now only about a nickel apart. Lower quality hard red winter wheat from the southern Plains is seeing more movement into cattle feedyards, being a cheaper alternative to corn. USDA will likely increase wheat feed usage again, if not in Monday’s report, then in later reports. Monday’s supply/demand report is expected to be a major market mover, with a huge – and very important – amount of data included. The much-anticipated planted and harvested acreage numbers for corn and soybeans will be most important. These numbers are expected to include the prevent plant and failed acreage, which has been a huge unknown so far this year. Of course, wheat numbers are always important, but they will take a back seat to the row crops this month.
U.S. Wheat Prices Seen Tagging Along with Corn
World-Grain – 08/09/2019
Changes in wheat production and yield forecasts in the U.S. Department of Agriculture’s August Crop Production and World Agricultural Supply and Demand Estimates reports to be issued Aug. 12 may be minimal, but adjustments in planting and production forecasts for corn and soybeans were potentially explosive and may tug wheat futures higher or lower going forward, Paul Meyers, chief agricultural economist for Foresight Commodity Services, Inc., told Milling & Baking News, a sister publication of World Grain, in advance of the reports. A bullish report for the corn crop was likely to pull wheat futures higher, Meyers said, pointing to May, when corn and soybean producers experienced lengthy planting delays due to excessive rain and in some cases flooding, leading to a runup in corn and soybean futures that pulled wheat futures higher in the wake. “I don’t know if it’ll be penny for penny, but wheat is going to be following along,” Meyers said. “We’re about 60¢ off the contract highs. I don’t think we’re going to revisit the highs. It would take a pretty bullish report on Aug. 12 in order to do that.” But a bearish report for corn wouldn’t necessarily pull wheat values lower to the same degree, considering the volume of futures that already have been sold off during the recent decline.
How to Keep North Dakota Farmers Strong? Pass the USMCA
The Bismarck Tribune – 08/11/2019
No matter where you are in North Dakota, there’s a good chance you’re just around the corner from one of our state’s many cattle ranches or wheat fields. That’s because agriculture is the backbone of North Dakota, creating new opportunities in all corners of the state. Almost 90% of our land is used by farmers and ranchers and about a quarter of North Dakotans are employed by the agriculture industry. The success of our agriculture industry is directly linked to our ability to engage in free, fair and enforceable trade with customers around the globe. To continue supporting North Dakota agriculture, our farmers and ranchers need trade agreements that match the reality of modern agriculture and the 21st century economy. How do we ensure this growth is possible? Through smart trade policies that put the interests of our family farms, wheat growers, dairy producers, and ranchers first. Luckily for American agriculture, a new trade agreement with Canada and Mexico called the U.S.-Mexico-Canada Agreement, commonly referred to as the USMCA, will inject new growth into North Dakota’s economy.
Wheat Harvest Wrapping Up in Colorado
The Fence Post – 08/09/2019
Wheat harvest in Colorado is just about in the bin for many producers. According to the U.S. Wheat Associates Harvest Report, Colorado’s harvest was 94 percent complete as of Aug. 2. As of Aug. 8, Colorado Wheat called harvest 94 percent complete. According to Colorado Wheat’s Communication Director Madison Andersen, Roggen Farmers Elevator in Weld County reports to be mostly complete, with a few fields still left to be cut. Numbers in this area have remained the same, with test weights above 60 pounds and average protein around 11 percent. Cargill-Byers reports to be about 95 percent complete. Test weights are ranging 58-64 pounds, with protein ranging from 8.5-13.5 percent. West Plains in Johnstown reports to be in the last part of harvest and anticipates completion within the next week. Average test weights have been around 61 pounds and average protein has been around 11 percent.
Source: U.S. Wheat Associates