US Wheat Associates Weekly Price Report for June 11, 2021Mon, 14 Jun 2021 09:12:41 CDT
US Wheat Associates Weekly Price Report for June 11, 2021..
You can click here to read the full report as a PDF.
Futures prices were mixed this week. CBOT soft red winter (SRW) futures shed 7 cents to close at $6.80/bu. KCBT hard red winter (HRW) futures were up 2 cents to end at $6.38/bu. MGE hard red spring (HRS) futures dropped 50 cents to close at $7.60/bu following some rain this week. CBOT corn futures gained 2 cents to end at $6.84/bu. CBOT soybean futures shed 75 cents to close at $15.08/bu.
· Basis in the Gulf was up slightly from last week, but export inquiries remained light ahead of harvest. In the Pacific Northwest (PNW), soft wheat basis was up significantly due to low old crop supply and slow farmer selling as dry weather continues.
· On June 7, USDA reported overall U.S. winter wheat conditions at 50% good or excellent, dropping one point from last week. The USDA also reported 85% of the winter wheat crop headed. The U.S. spring wheat crop condition is rated 82% good or excellent while 90% of the crop is emerged. The latest USW Harvest Report can be found Here
· This week’s commercial sales for marketing year 2021/22 were up significantly from last week to 325,900 metric tons (MT), in line with trade expectations of 200,000 MT to 450,000 MT. Year-to-date commercial sales for delivery in 2021/22 total 5.5 MMT, 5% behind last year’s pace. USDA expects the total 2021/22 U.S. wheat exports to reach 24.5 MMT, 9% below last year, if realized.
View the most recent USW Commercial Sales report here.
U.S. Drought Monitor
· Dry weather continued in the High Plains this week. Still, spotty rain improved some areas experiencing severe and extreme drought. Rain in Texas and Oklahoma continued delaying harvest, but hot, dry conditions are expected to return across the Southern and Central Plains that will speed up harvest pace. Except for some spotty rain in North Dakota and some relief in eastern Montana, drought conditions dominate.
Global Wheat Reports:
· Following favorable weather, Bulgaria’s agriculture minister said that their wheat crop might increase 20% compared to 2020. The ministry forecasts Bulgaria’s wheat crop at between 5.6 MMT and 5.8 MMT.
· Russian agriculture consultancy IKAR raised the forecast for Russia’s 2021 wheat crop to 82.0 MMT. Sovecon, another Russian-based analyst, forecast production at 82.4 MMT following speedy spring wheat sowing and improved weather conditions.
· Stratégie Grains raised its monthly forecast for 2021/22 European Union soft wheat exports to 28.6 MMT due to improved competitiveness on the world market.
· The Indian government, through the Ministry of Consumer Affairs, Food, and Public Distribution, has procured a record amount of wheat from local farmers for the 2021/22 marketing year. As of June 6, the ministry has purchased 416 MT of wheat, up 7% compared to 2020/21.
Baltic and U.S. Dollar Indices
· The Baltic Dry Index (BDI), an assessment of the average cost to ship raw materials such as grains, coal and iron ore, gained 8% on the week to end at 2,669.
· The U.S. Dollar Index increased slightly from last week’s 90.15 to close at 90.59.
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