News & Commentary
August 2nd, 2014
Our 2014 wheat harvest is all but in the books now. Even with all the hail we received harvest was still quite good. Overall test weight and proteins were good and yields were excellent where it didn’t hail. The adage that rain makes grain is quite true. Despite almost all our acreage receiving some hail damage we managed to dump double last year’s volume. Now to press on to the next crop and hope we can keep getting timely rains.
I’m told that the corn throughout the US corn looks remarkably good. That is supported by a 75% good to excellent rating put out by the USDA. So for now I’d expect prices to continue to drift lower, although how much lower will be determined by how well the next couple of months treat the crop.
Wheat is still going to be an interesting market to watch. With developing dryness in Australia and too much rain in Europe hurting the wheat quality futures have staged a bit of a rally. Wheat exports have been decent and up front demand seems to be decent. So if that continues I wouldn’t be shocked by higher prices. Yet it may be hard for wheat to buck an overall bearish commodity world forever. With soybeans and corn being absolutely pummeled price wise wheat will have to keep a very compelling story going in order to stay strong.
Till Next Time,