Wheat prices could rise in the event of delayed harvesting in the U.S. and Canada

2019-09-23 12:07:39
Machine translation
Wheat prices could rise in the event of delayed harvesting in the U.S. and Canada

Excessive precipitation in the Northern US plains and canadian prairies delayed the harvesting of wheat and can reduce grain quality.

 

In Canada, late planting and lack of heat slowed the maturation of wheat and delayed the start of harvest. However, heavy rainfall in September delayed harvesting and resulted in some regions began germination of wheat grain in the ear.

 

the Proportion of hard red spring wheat, which is grown in the Northern United States and used for production of flour for bagels, pizza and mixing with other varieties of flour, 20-30% of the total production of wheat in the United States.

 

On September 15 in the United States threshed 76% of the area of spring wheat compared to 93% at that date on average in 5 years. Last week in North Dakota and Montana experienced heavy precipitation, and this week predicted an even more powerful rains.

 

In Canada, wheat is harvested slower than in the United States, and as of September 16, in the province of threshed only 13% of the area of wheat. Only in this province the crop is harvested 23% of the area compared to 50% in average of 5 years. Manitoba has collected 71% of spring wheat, compared with 91% in average for 3 years. In Alberta collected only 15% of spring wheat and 18% of all grains and oilseeds in comparison with 31% on average for 5 years.

 

In Canada this week, expect lower temperatures with frosts to -2 to -3 degrees, which also may damage crops. The decrease in precipitation will accelerate the harvest.

 

Traders have lowered forecasts of production of high-quality spring wheat and durum that led to the increase in the difference in prices between soft and hard varieties.

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