Wheat Market Snapshot Bearish

Northwest Farm Credit Services recently released their quarterly industry Market Snapshots. Today we will look at the wheat snapshot, Northwest Farm Credit Services Knowledge Center’s Matthew Kloes says
Kloes: “Wheat producers throughout most the Northwest received the proverbial ‘million dollar’ rain this June. Rain saved moisture-strained wheat crops, but did little to suppress market volatility. After peaking above $7 per bushel, wheat prices fell to near breakeven levels of approximately $6 per bushel in June. However, most producers forward contracted between 25 and 35 percent of their 2014-15 production at profitable early-spring prices.”
The Snapshot continues with the drivers impacting wheat markets include: 1) Lower U.S. production: The USDA forecasts 2014-15 U.S. wheat production 8.8 percent lower than the prior year, constrained by drought conditions in the Central and Southern Plains. 2) Rising global supplies: World wheat ending stocks for 2014-15 are forecast at 188.61 million metric tons, up 1.4 percent from 2013-1. 3) Europe usurps U.S. in exports: U.S. wheat exports are projected lower than European Union wheat exports for the first time in history. 4) Volatile prices: Wheat prices varied by 20 percent or more this spring and face bearish fundamentals moving forward.