Spring wheat yield and protein reports are starting to come in as combines are rolling across the prairies.
All spring and summer the reports from the field have been about variability. This continues into harvest, says Dwight Nichol of DLN AgVentures at Gravelbourg, Sask: “It’s variable. It’s the same here as it is across the province and across the prairies.”
One thing that does not appear to be as variable is the level of protein. Some wheat is high and the rest, higher.
“It’s supply and demand. When there’s lots of it out there, you don’t get a premium for it,” notes Nichol.
Spring wheat futures in Minneapolis have pulled back lately after rallying roughly a dollar per bushel in the second half of July and early August, with concerns about yields and production issues in Russia, Ukraine, the E.U. and Australia, as well as Western Canada.
Nichol cautions though, “(Wheat) is on a bit of an island right now. The other grains, especially the majors, soybeans and corn don’t have the story to really follow it, so I think the ceiling to the wheat market is going to be the other substitutes and the other grains.”
Shaun Haney checked in with DLN’s Dwight Nichol on RealAg Radio on Tuesday to discuss early harvest results and what’s happening in the wheat market: