Cash wheat hits US$10 in the U.S

Export demand and concerns about planting have pushed U.S. cash prices for hard red spring wheat above US$10 a bushel for the first time in 31 months.

Demand for spring wheat, a high-protein variety grown in northern Plains states like North Dakota, has been strong after rains lowered the quality of wheat in Canada and Australia. Traders are worried wet weather may prevent farmers from planting a big crop this spring to replenish supplies because heavy snows could lead to flooding and saturated soils.

"Rivers and streams are still running full. It could be a mess," said Mike Krueger, president of the Money Farm, a grain marketing advisory service near Fargo, N.D. National cash price indexes maintained at the Minneapolis Grain Exchange last traded at US$10.05 1/2 a bushel for hard red spring wheat, reflecting an average basis of - 4 3/4 cents relative to Wednesday's settlement of the MGE hard red spring wheat futures contract. The average cash price jumped from US$9.77 a day earlier.

Snow cover should remain "very deep" across key growing areas in North Dakota, eastern South Dakota and Minnesota, according to MDA EarthSat Weather, a private weather firm. Hard red spring wheat is often blended with lower-quality wheat varieties, such as soft red winter wheat, or used to make bread. Read more...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.