Wheat markets seeing strength this month, rallying more than a dollar amid global weather issues and falling production. Angie Setzer of Citizens Grain recently telling AgDay's Clinton Griffiths that rain makes grain unless it's wheat harvest.
"It makes headaches and ulcers," says Setzer. "The worst thing that we're seeing right now is the slow harvest pace."
As of June 23, winter wheat harvest was 15% complete, 19 percentage points behind the 5-year average. Harvest in Kansas, the leading winter wheat-producing state, was 5% complete. That's 31% behind the 5-year average pace.
"Obviously, there are areas that are getting harvested and there's reduced acreage, so we have that going for us," says Setzer. "Right now quality factors haven't been as bad on what has been able to get harvested."
Setzer says the fact that wheat maturity was running behind is helping keep quality in check.
"I thought for sure by now we would be seeing some of that garbage come in where it's been sitting out in the field," says Setzer. "You start to lose quality, the wheat sprouts and it creates a poor flour product."
In the northern states, Setzer says she's watching for head scab and vomitoxin given the wet weather this year.
"The wheat market has a whole host of super fun stories and most of them keep me up at night," says Setzer. "There will be a lot of idle acres after the spring that are going to want to go into wheat, especially if we get into that $5.75 to $6.00 range."
Watch the entire interview in the video.