The latest U.S. Drought Monitor shows nearly all of the U.S. spring wheat and durum crop in some sort of drought. Global Commodity Analytics and Consulting President Mike Zuzolo thinks recent export demand for spring wheat is end users trying to get ahead of supply issues. “We’re in a catastrophic situation, especially as the heatwave comes in this week.” Traders could be waiting to see how much damage there has been to the spring wheat. “I think the July USDA report was a wake up call, but the grain trade has been tiptoeing around it right now. I don’t think they really grasp this is as bad if not worse than what the Illinois and Indiana farmers went through with corn in 2012. We’re heading toward that kind of disaster if the drought numbers are any indication.”
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