The Good: Minneapolis futures closed up three to four cents per bushel today, which you could say was a moral victory in light of the recent downturn in wheat prices. More importantly, the spread between the Minneapolis and Chicago contract (September) has moved close to par over the past week. The spread will likely move to a premium favouring spring wheat over the coming months.
The Bad: Don’t look now, but crude oil prices are on the move. The combination of production cuts and the potential for increasing demand as economies recover from COVID-19. This is bad news for consumers of gasoline and diesel, but one has to keep it in perspective. For agricultural producers, the good news is that the corn market has started to rally on the increased prices for crude oil. The rally in the June contract has just pushed values back into the trading range that was established during March.
The Ugly: The storm last night in the Northern Plains dumped some heavy amounts of precipitation in northeastern Montana and parts of western North Dakota. Precipitation amounts were mostly in the 25 to 50 mm of rain, but there were isolated reports of 100+ mm in parts of Montana. The rains were not welcome as spring wheat planting is still behind normal in the region.