Frontrunner - 16th April 2021
Wheat markets continued to rise this week, reacting to increasing concerns for wheat crops as dry and very cold weather persists in Western Europe and parts of the US. The latest US drought monitor maps show an increasing area of extreme drought now impacting on over three-quarters of major spring wheat state, North Dakota. However, spring wheat drilling in the state achieved 8% completion by 11th April compared to the 2% average for this time of year. Nationally, spring drilling is 11% complete compared to the 6% average.
Dry cold conditions remain in the forecast and US spring wheat futures rallied to new contract highs this week. In contrast, the central southern plains are due rain which will benefit winter crops. The condition of winter wheat crops remains unchanged at 53% rated ‘good’ to ‘excellent’. Record low April temperatures have been prevalent in France and the UK. How damaging this has been for cereal crops remains to be seen. With more dry weather forecast for Western Europe, new crop wheat futures rallied to new contract highs. London new crop wheat futures have added a significant £15/t to their values since their lowest point in March, bringing them now to their highest values this season.