Fireworks in today’s WASDE monthly crop report, as the USDA came around and acknowledged the disaster that is building in the hard red winter wheat belt states, lowering that winter wheat crop substantially, dropping carryouts well below average guesses, sending wheat futures. to the highest values in several years. The Kansas wheat spot contract got to $7.30 so far today on the session. We haven’t seen that in quite some time. It’s lifting spring wheat values because usually the spreads carry spring wheat over winter wheat, but not currently as spring wheat is just trying to keep up on Kansas City wheat values. This had initially given support to corn and soybeans, which are now struggling in price. The old crop corn stocks for corn and beans pretty much left where we were, but it’s the new crop soybean stocks down to 310 million bushels. That’s getting new excitement that new crop beans, if the acreage numbers are actually increased, these price values over $12 are quite advantageous for a hedge. So, as we look at the overview of the marketplace, corn continues to rally into the second quarter as we had been anticipating earlier in the spring as pricing evaluations are now getting to levels that are near $5 for the spot contract on corn with a retest of potentially this $3.87 value. New crop December corn has been trading over $5 several times this season here in the spring, and it’s looking like further advance can be seen. But for now, today it’s all about wheat. We don’t have that much, and prices for winter wheat need to go to values that actually stop exports. Now I’d encourage it.
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