- The latest US winter wheat crop condition was reported with poor/very poor classification at 35%, a 2% jump from a week ago whilst good/excellent dropped a corresponding 2% to 33%. The five year average for poor/very poor is 10%, good/excellent is 64%. Progress IS being made with the crop 14% headed, which compares with 8% last week and the five year average of 29%; interestingly last year was at 55%.
- Spring wheat, as we have reported, was 12% planted, a gain from last week’s 7% but this fares badly against 37% as the five year average and 70% last year. The emerged crop is, unsurprisingly, only 3% compared with the average of 10% and last year’s 26%.
- The data comes as little surprise following the extended winter with particularly cold conditions coupled with rains delaying planting and hampering development of the planted crops. Perhaps on a more worrying note, the forecast for further freezing temperatures, possibly reaching as far south as the Texas Panhandle, later in the week, has left wheat markets lead prices to the upside as funds cover particularly large net short positions.
- The area which remains unplanted when compared with normal extends to a massive 31 million acres and the prospect of not only a further freeze but also rains extending to some 4 or 5 inches will do little to boost the planted acres in the immediate term. Corn plantings at 5% compared with a more normal 31%, and little expectation that the figure will reach double digit percentages by the weekend leave little doubt that 2013 will rank as the slowest starts on record.
- Front month MATIF wheat put in strong gains closing up €4.00, albeit off the highs of the day; on a Sterling adjusted basis the closing levels put the Paris May ’13 contract at a premium of a shade above £20.00 to its London counterpart. This is the largest Paris premium we have seen for some while.
- To download a summary of the US wheat condition statistics please click on the link below:
W:E 28 Apr 13 Wheat Condition
