Frontrunner - 4th June 2021
Price volatility for the world’s wheat markets continued this week. After initially making a sharp recovery following last week’s slump, ultimately wheat markets failed to hold onto their gains. This was highlighted by London wheat futures, which increased by £8/t at their peak midweek before subsequently losing two-thirds of that rally.
Contrasting fortunes for potential wheat yields across the Northern Hemisphere are contributing to this choppy trade. Much of Europe, the Black Sea and central and southern US producers look set for promising crops. In contrast, much of the northern US and the primary spring wheat producing states, North and South Dakota, are gripped by extreme drought with weather primarily forecast to continue to be hot and dry. The US spring wheat condition dropped two points on the week to just 43% rated ‘good’ to ‘excellent’ compared to 80% which achieved this rating last year. This crop has the worst condition index since 1988.