Spring wheat is losing its grip.
That is, its grip on other grain markets, with a soft start to Minneapolis wheat futures not reflected so much in Chicago.
Minneapolis spring wheat for July shed 1.3% to $6.19 ½ a bushel as of 09:15 UK time (03:15 Chicago time), undermined by recent rains which have eased, somewhat, fears over drought damage to the crop in the northern US Plains.
"The market remains overbought. There have been beneficial rains," said Benson Quinn Commodities, forecasting that Minneapolis futures will "drop back to gap [in the chart] left on Monday night".That would mean a retreat to $6.06 a bushel.'Production prospects remain high'But what benefit have the rains actually brought to northern Plains spring wheat crops, some of which have, after all, already been cut for hay by farmers desperate to salvage something, or are too far gone in development for moisture to have much benefit?This question makes Monday's weekly US Department of Agriculture crop progress report all the more important, in giving a take on recovery in spring wheat after, last time, showing a 10-point fall to 45% rated "good" or "excellent".Richard Feltes at RJ O'Brien forecast that next Monday's briefing "will show modest gain in US had red spring wheat ratings… given known rains in upper Great Plains."...MORE
It was a good run