Wheat Letter: Severe Drought Continues in U.S. Spring Wheat Country

Hard red spring (HRS) futures rose $0.85 week-over-week to close at $8.10 per bushel on Friday, June 4, a level nearly $3.00 more per bushel then they were a year ago.

Some recent rain in western Canada took some pressure off HRS prices, but severe drought in North Dakota, the top-producing HRS state, remains the crucial market factor.

AgriCensus on June 8 said the U.S. Department of Agriculture is likely to slash its spring wheat forecast in its June 10 World Agricultural Supply and Demand Estimates (WASDE) report, following the prolonged period of drought.

For the full story from U.S. Wheat Associates, click here.

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