Wheat Prices Soar Amidst Ongoing Conflicts and Weather Worries
The US drought monitor shows worsening conditions in many areas of the Southern Plains, particularly where winter wheat will be planted. Despite intense heat and higher fertilizer prices, the Kansas City wheat futures made a new high at $7.96 ¼ on Thursday.
Profarmer's crop tour national yield estimates released Friday added bullish sentiment to the rally, with corn yields pegged at 173.2 bushels per acre (bpa) and production at 15.344 billion bushels versus USDA's most recent 180.7 bpa and total production of 16.013 billion bushels.
The current rally in wheat and corn is counter-seasonal, but the ongoing conflicts in the Black Sea are also atypical. A weaker US dollar supports the commodity complex, which was particularly seen in metals, grains, and energy.