U.S. Wheat Quality Good and Global Demand High

ARLINGTON, VA – Variable growing conditions greatly influenced the U.S. hard red winter (HRW) wheat crop in 2020, according to the U.S. Wheat Associates (USW). In areas with favorable growing conditions, record yields resulted in lower protein but excellent test weights and kernel characteristics, while regional swings in temperature and moisture led to lower yields but higher protein levels. The result is a crop that has generally outstanding kernel characteristics with flour, dough, and bake- quality attributes equal to or better than last year and ranks above the 5-year averages. This comes as wheat futures prices have been moving dramatically higher. Higher prices usually pressure export basis values when farmers sell wheat “into the rally” due to an increase in wheat available for export. With massive demand from China this year, however, it is a completely different phenomenon in the global marketplace.
(SOURCE: All Ag News)