Frontrunner - 23rd July 2021
Persistent hot and dry weather continues to damage spring wheat crops in the northern US states, particularly North Dakota and Minnesota. Weekly crop condition ratings slipped to 11% rated ‘good to excellent’, which is just one point above the worst condition rating on record in 1988. The area rated ‘poor to very poor’ increased on the week to 63% from 55% and this data propelled US spring wheat futures to new contract highs - their highest level since November 2012. The weather forecast signals little relief for parched crops and similar problems persist in the Canadian prairies. In its July World Agricultural Supply and Demand Estimates (WASDE) report the United States Department of Agriculture (USDA) cut its Canadian wheat crop estimate by just 500,000 tonnes to a new figure of 31.5 million tonnes, which compares to 35.18 million tonnes produced in the previous season. However, some see Canada producing as little as 25 million tonnes, an estimate which tightens global supply of high-quality bread making wheat.