Agricultural News
U.S. Wheat Associates - Price Report for May 27th, 2022
Mon, 30 May 2022 07:41:18 CDT
US Wheat Associates Weekly Price Report Ending May 27, 2022
• Wheat futures ended the week mixed. CBOT soft red winter (SRW) futures were down 11 cents to close at $11.57/bu. KCBT hard red winter (HRW) futures were down 17 cents from last week at $12.35/bu. MGE hard red spring (HRS) futures were up 25 cents to close at $13.04/bu. CBOT corn futures were down 1 cent to $7.77/bu. CBOT soybean futures were up 27 cents at $17.32/bu.
• Basis for all wheat classes was down in both the Gulf and Pacific Northwest (PNW) this week. Well-timed rain in the central Plains helped ease basis for HRW. Advancing planting progress and significant moisture in parts of eastern Montana and western North Dakota also eased HRS basis.
• The latest USDA crop progress report, released May 23, rated 28% of the winter wheat crop as good or excellent, a 1-point improvement from the week before. Winter wheat rated fair is 32%, unchanged from last week, while wheat rated poor to very poor is 40%, a 1-point decrease from last week. Winter wheat headed is 63%, 2 points below the 5-year average of 65%. Learn more about the current U.S. wheat crop by reading the weekly USW Harvest Report.
• USDA reported that as of May 22, 49% of spring wheat was planted compared to the five-year average of 83%. In North Dakota, spring wheat planted is 27%, well behind last year's pace and the 5-year average of 80%. Minnesota's spring wheat planting is only 11%, 89 points behind last year's pace.
Commercial Sales
• For the week ending May 19, net U.S. wheat commercial sales for delivery in 2021/22 were 2,300 metric tons (MT). Year-to-date 2021/22 commercial sales total 19.4 million metric tons (MMT). USDA expects 2021/22 U.S. wheat exports to total 21.36 MMT. Wheat delivery in 2022/23 was 246,263 MT.
• View the most recent USW Commercial Sales report here.
• The Texas panhandle and central and northern Oklahoma received much-needed rain this week, with as much as six inches in some areas. Across the High Plains, the rain was widespread with varying amounts. Northeast Nebraska saw considerable improvement to severe drought conditions. In the western portion of the United States, conditions were dry in wheat-growing areas. However, considerable seasonal rain has shrunk areas rated with abnormal dryness and severe drought conditions across Washington, Oregon, Idaho, and Montana.
Global Wheat Reports;
• Heavy rain in Manitoba, a Canadian province, has slowed spring grain planting, according to a May 24 crop report. The provincial seeding report showed 10% completion, behind the 5-year average of 77%, and estimated that farmers were about 3 to 4 weeks behind normal seeding progress. Alberta, a neighboring Canadian province, showed spring wheat planting was 59% complete, ahead of the 5-year average of 55%.
• Argentina's fertilizer association, Fertilizar, said that fertilizer use is expected to drop 7% compared to last year due to higher fertilizer prices, tight availability and political uncertainty, reported AgriCensus.
* Egypt, the world's largest wheat importer, will allow wheat shipments with up to a 14% moisture level, up from 13.5%. The trade ministry said the move would help with "current supply conditions." The increased moisture basis will open Egyptian wheat tenders to more offers, according to a regional trader who noted that some EU-origin wheat has 14% moisture basis offered in their contracts.
• A senior Turkish official is holding talks with Russia and Ukraine to open a corridor via the Bosporus to allow the passage of Ukrainian grains, reported Reuters. Russia's deputy foreign minister said on Wednesday that Moscow was ready to provide a corridor for vessels carrying food in return for the lifting of some Western sanctions. Russia has blockaded Ukrainian ports since invading Ukraine in February.
• In a meeting of the Eurasian Economic Commission (EEC) this week, Russia said that members should impose quotas and duties on wheat and flour exports to third countries. The Russian agriculture minister said the move would prevent the re-export of Russian grain through Eurasian Economic Union (EAEU) members. The EEC and EAEU are economic blocs consisting of former Soviet countries.
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, increased 18% on the week to end at 2,681.
• The U.S. Dollar Index decreased from last week's 102.82 to close at 101.43.
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