Wheat Market Overview

The commodity markets were closed yesterday in honor of the Memorial Day Holiday so there are no grain or cattle prices to report instead we are going to check in with Henry Kornegay of Jackson Commodities to give us an overview of what has been happening concerning the wheat futures markets.

Kornegay: "Spring wheat planting is progressing. We're slightly behind but it is going to get in the ground. Commodity Weather Group believes El Nino is likely — and that will benefit prices but until then conditions are looking good. The USDA released their World Supply and Demand numbers and the U.S. supply has tightened due to the dry conditions in the Southern Plains — Kansas, Texas, Oklahoma. However, since the report prices have been down, we think this is in large part because of the world numbers. Production was up but ending stocks came in 1.1 million tones higher than a year ago. In addition to this, Russia sold wheat to Mexico at $70 a ton discount to the U.S.. This demonstrates that the U.S. prices were high compared to the world. And versus year ago we're 300,000 tons lower in accumulated exports due to weakened demand. So if we have a spring wheat production of 600 million bushels, that would suggest a total wheat production in the U.S. of about 2 billion bushels and that is the fourth smallest in 14 years. So with any unforeseen adverse conditions, price could turn around for us."

To learn more go to jacksoncommodities.com.