Drought conditions had the wheat markets on edge last week. Roy E. Abbott Futures market analyst Ron McDaniel says spring wheat production estimates continue to fall while demand increases. “We’re talking about taking the USDA’s Canadian crop estimate lower with the continued heat stress. We all think the USDA did not get honest about abandonment in the northern U.S. as well. There is a full-on crunch of supplies for high quality protein milling wheat.” Production issues around the world will also impact global wheat supplies. “Germany and Poland grow better milling wheat. France is a soft wheat. The areas are all getting too much rain, hurting the protein and quality. There’s also drought in other areas. The market driver is wheat protein, but now, we’re staring to see other wheat classes catching on.”
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