Wheat Market Update

Wheat Market Update

I’m KayDee Gilkey with the Market Line Report for May 26, 2015.
The commodity markets were closed yesterday for the Memorial Day Holiday. So today we will catch up on status of the wheat crop and condition. Central Washington Grain Growers Marketing Manager Ty Jessup begins with a look at global wheat supplies.
Jessup: “Wheat situation — there is plenty of wheat in the world and the U.S. is a residual supplier. The Black Sea grain looks good overall. There is some concern over Central Russian crop - it’s starting to get dry but for the most part looks good. European grain looks good. The Chinese wheat crop looks very good. Some concerns over quality in India so they are sourcing some good quality wheat from Australia and Black Sea and then they will export some feed wheat. There are long-term concerns over a possible drought in Australia but at this point there is lots of wheat in the world so it is hard to be bullish.”
I asked him about the Club Wheat market
Jessup: “Well the Club Wheat the old crop market is very tight. Supplies are very tight. We’ve seen some very big premiums this year. The premium has softened just because we are getting to the end of crop year. The new crop … we don’t know the production yet. To start out the season out, the premium is lower than it was a year ago. A lot of that is just a reluctance of the grower to sell it right now. We’ll see based on the combines and the harvest and what kind of year we are going to have as to how it’s going to look for next year. So it is a little uncertain. It will definitely be a decent premium. Will it be as good as last year or not? I just don’t know yet.”

 

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