More upside probable for spring wheat
A drought in the northern U.S. Plains and Canada and strong demand for high protein types of wheat have pushed Minneapolis Grain Exchange spring wheat futures prices to all-time highs.
Rich Nelson, chief Strategist at Allendale, tells Brownfield he thinks there’s still room for spring wheat to move higher, “My numbers are suggesting that the Minneapolis contract will see roughly about $10 (per bushel), so roughly about another $.50 in front of us for that contract specifically.”
Nelson says there’s a limited upside for winter wheat, “Both Chicago and K.C., we looking around $7.45, so only about a dime higher.”
U.S. winter wheat planting is ongoing with recent rainfall generally welcome in most areas, while global wheat conditions most look good, but parts of Argentina and Russia do need improved precipitation.