Minneapolis wheat tops $ 10 for first time since 2012

Martinson, speaking to Rook at this week’s Agweek Market Wrap, sponsored by Gateway Building Systems, said a combination of factors came into play, including good demand for milling-grade wheat, a tight supply mill-grade wheat, with China facing planting issues, a forecast for dry conditions in the southern plains and prospects that appear to show a likely recovery in demand.

As to where it might go from here, Martinson said that was a guess. He didn’t expect wheat to cross the $ 10 mark until spring. The next resistance levels are $ 10.35 and $ 11.20, and there isn’t much priority for this type of price.

“We haven’t been here many times, so this market has some leeway right now,” Martinson said.

Kansas City also hit record highs on Friday. Rook said Minneapolis is the least traded of the wheat markets, with the other market in Chicago. Minneapolis is about a third of the volume of other cities. But Martinson said it’s a matter of quality rather than quantity right now.

“This is the quality wheat and this is where the attention is,” he said.

Corn benefited this week from the strength of the wheat market, as well as the crude oil market. But it is being held back by the soybean market, the progress of the harvest and the successful planting process in the southern hemisphere, Martinson said. It continues to trade around $ 5.40, Rook said.

Corn will have to grow to get acres with high fertilizer price ratios because soybeans use less fertilizer. Martinson said forecasts of heavy rains in the eastern Corn Belt, where stock integrity is an issue, could also become a factor for corn.

Soybeans have been dominated by the soybean oil market for weeks, but that market struggled this week as a follower of the palm oil market. Another factor that “took the breath away” of the soybean market was not confirmation of strong soybean demand from China, Martinson said.

The soy flour, on the other hand, was stronger than usual, Rook pointed out. Martinson said this was a good thing and partly due to concerns about the weather in Argentina.

The US Department of Agriculture released a Cattle on Feed report on Friday, which was “pretty optimistic on the surface,” Rook said. Martinson said this should support the feeder market.

Cattle could be held back a bit by a competing protein – pork.

“The ugliest market of the week was pork,” Rook said, pointing to new contract lows in this market.

Martinson said he feels the pork market needs to bottom out, but continues to struggle.

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About Marco C. Nichols

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