Second Quarter's Wheat Market Snapshot

With second quarter's Market Snapshots for wheat here is Northwest Farm Credit Services Michael Stolp.

Stolp: "Northwest wheat crop conditions are average to well above average, supported by timely rains in most regions. However, the outlook for wheat prices remains bearish, overshadowed by forecasts for rising U.S. and global ending stocks. Questions around quality loom domestically and internationally. Although record U.S. hard red winter wheat yields are forecast, millers note challenges associated with low protein levels. Protein premiums are expected to widen."

That above average crop estimation is also echoed in Colorado for its wheat crop.

The snapshot continues with the outlook for wheat — internationally and reports recent wet weather in the EU and Black Sea regions raises concerns surrounding lower production and quality.

Year-over-year increases in total domestic use (up 5.7 percent) and exports (up 9.8 percent) don't offset rising wheat supplies. Consequently, new-crop winter wheat will compete with 2015- 16 wheat beginning stocks for storage space. Regions with bumper crops are expected to use multiple storage options, including groundpiles.

According to a recent Bloomberg article, Canada is also expecting among the top five largest wheat harvests on record. With more than 80 percent of the crop in Alberta, the second largest producer, were in good to excellent condition as of the last provincial reporter on July 5th.