Weekly Market Highlights
- Wheat futures prices fell this week as weather concerns eased for both the spring and the winter wheat crops.
- Basis premium prices continued to climb. Concerns may have eased for now, but millers needing current and short term future supply are competing for what wheat is for sale, which supports prices.
- Wednesday’s USDA report lowered the U.S. winter wheat carryover by 20 million bushels, which was not a surprise to the market, and is not a concern given the size is still ample. World wheat carryover continues to increase.
- Spring wheat planting is progressing nicely now and has surpassed the halfway point. Planting still lags behind the five year average but not significantly.
- Time will tell whether April’s prices are the lowest we will see this crop year. Weather will determine the supply, and the resulting cost, of good protein wheat. Stay tuned!
Facts on Flour: Soft Red Winter (SRW)
Soft Red Winter Wheat is grown in the eastern third of the United States. SRW is high yielding wheat, but relatively low in protein, usually about 10%. SRW is used for cakes, pastries, flat breads, crackers and snack foods. This fall- seeded wheat comprises about fourteen percent of U.S. wheat exports.
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