Farms.com Home   News

Spring Wheat Futures at Highest Since 2011

Spring wheat futures posted more strong gains on Thursday, helping to lift the market to its highest in a about a decade.

As can be seen on the chart below, the market has climbed to its highest since June 2011 when it reached $11.20/bu. However, the market remains well off its all-time high of $25 achieved in February 2008. Much of the current strength is coming from tight global supplies of high protein, milling quality wheat following drought-reduced crops in the Canadian Prairies and the US northern Plains this year, along with smaller Russian crop, also due to overly dry weather.

In its October supply-demand update, the USDA estimated 2021-22 global wheat ending stocks at 277.2 million tonnes, down 6 million from the previous month’s estimate and the lowest since 2016-17. Canadian wheat (excl durum) ending stocks for 2021-22 are projected by Agriculture Canada to fall to just 3 million tonnes, down almost 2 million or 39% from a year earlier, while total US wheat stocks are pegged by the USDA at 23 million tonnes, a year-over-year drop of almost 5 million or 18%.

In terms of the world’s major exporters (Argentina, Australia, Canada, the EU, Kazakhstan, Russia, Ukraine and the US), combined 2021-22 ending stocks are estimated by the USDA at 50 million tonnes, versus approximately 60 million a year earlier and down roughly 33% from 2016-17. (Ending stocks held by exporters are typically considered a relevant metric for measuring supplies that are available to the world market.)

Click here to see more...

Trending Video

Harvest 2021 is in the bins!! And an airplane tried to dive bomb us!

Video: Harvest 2021 is in the bins!! And an airplane tried to dive bomb us!


South Sask Farmer - Harvest 2021 is in the bins!! And an airplane tried to dive bomb us!