Wheat Futures Price Drop To 10-Year Lows.
Farms.com Team
Wheat futures prices fell to a 10-year low, as massive stocks and ever improving North American harvest prospects keep hammering at the market.
"There is growing supply of wheat." A market analyst remarked.
Several new higher yield estimates are being released by analysts on the coming 2016 North American wheat harvest. The International Grains Council boosted ideas of world wheat production by 7 Million tons to 729 Million tons. http://www.igc.int/downloads/gmrsummary/gmrsumme.pdf
Even with an upgrade to consumption prospects, the wheat market is now forecast 9 Million tons in surplus, growing the already-wheat stocks even further.
Improving US Yield Prospects
The early yield reports from farmers harvesting indicate the yield prospects for the US crop are looking ever better. CHS Hedging noted "favourable harvest results in the central US growing areas and harvest pressure in Kansas". "The spring wheat crop is ahead of schedule but conditions continue to deteriorate in some areas which may lend underlying support to prices," CHS Hedging said.
Informa Economics forecast the US wheat crop 2.217 Billion bushels (60.3 Million ton), 140m bushels ahead of the USDA's official forecast.
The US wheat harvest has been seeing very strong yields, with industry group US Wheat Associates reporting high potential, noting "nearly every region in the US experiencing favourable weather conditions".
"A mild winter and early spring allowed winter wheat to emerge from dormancy in better than normal condition and beneficial spring rains further improved yield potential," US Wheat Associates said.
On Thursday the USDA upgraded its ideas for US wheat acres by 1.2 Million acres, to 50.8 Million acres, ahead of analyst expectations.
Click the following link to see how the wheat futures market prices reacted to the news.
http://www.farms.com/markets/?page=quote&sym=ZWU16&mode=i