Wheat planting this fall in Michigan is short. Roughly 88 to 89 percent of the wheat is in the ground, and it doesn’t appear that more will get planted.
If these acres are short and remain short, Gary Kaufman of Star of the West Milling says there’s short covering that’s part of the rally.
“Wheat was the leader last week—short covering is going on a little bit last week,” said Kauffman. “Early reports [from] France’s ag ministry [shows] 78 percent of the soft wheat crop is rated good to excellent, which is a sharp decline from 84 percent in prior weeks.”
Kauffman also says only 22 percent of harvest is complete in Argentina which is also playing a role in markets.
Over the next four weeks, there appears to be marketing opportunities for Michigan’s wheat growers, and it’s encouraging wheat growers to get wheat planted.