Market Morsel: US crop conditions are high

Market Morsel

The US spring wheat is only just starting to be harvested. The US spring wheat is a high-protein wheat that is produced in the northern states of the US.

I wrote today about the poor conditions of wheat in France. The opposite is in play in the US spring wheat crop.

The first chart below shows the US spring crop. The US spring wheat crop is currently at 74% good/excellent. This is the best since 2018 when this time of year it was 78%. The map shows the year-on-year change in conditions. The most important states are all showing significant improvements.

The Minneapolis wheat futures contract covers the spring wheat. Minneapolis tends to have a strong premium over Chicago due to its higher protein content.

The premium has dropped in recent months due to the improving conditions. The question will be whether Australian protein values get impacted as heavily.