Snow in Kansas gives wheat market a shake
May 4, 2017
The weather event that we have been waiting for to give the markets a shake finally hit the US earlier this week with unseasonal snow falling in Kansas, Colorado, Oklahoma and Nebraska, potentially wiping out up to 10% of the US winter wheat crop.
With established crops under snow and damage unknown, wheat markets rallied A$10/mt on Tuesday giving local growers the opportunity sell remaining old crop. A $240/mt Pt Adel basis price reached for APW1 saw new crop selling also kick into gear.
This rally could be short lived however, as the snow melts and damage is assessed. Much has recovered however broken stems in some areas will be an issue. It will be some time before the full extent of this damage is realised.