Wheat spread reaches seven-month high amid rising US crop concerns

The premium of hard red winter (HRW) wheat over soft red wheat has climbed to its highest level in more than seven months, as concerns intensify over crop conditions in the central United States. The widening price spread is largely driven by adverse weather, which is weighing on production prospects.

US winter wheat conditions have deteriorated significantly over the past month due to ongoing drought across the Plains, where hard red wheat — primarily used for bread — is predominantly grown. Forecasts for continued hot and dry weather in the coming days are expected to further aggravate the situation.

According to the United States Department of Agriculture, temperatures in the region have returned to “significantly above-normal levels,” with a brief cold spell quickly giving way to “record-setting warmth” as early as Sunday.

The Hightower Report noted that dry and windy conditions are expected — a combination that is particularly unfavorable for HRW wheat crops and likely to increase stress on already weakened fields.

As of Thursday, the premium for hard red wheat reached its highest level since August. At the same time, broader wheat prices have also been supported by geopolitical uncertainty, including mixed signals surrounding a potential end to the war in Iran.

Tags: prices, wheat, USA