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Senior Advisor

$6 premium for 15% hi pro wheat.

U.S. spring wheat protein premiums soar after wet, cool summer

15-Sep-2014 06:00

By Julie Ingwersen

CHICAGO, Sept 15 (Reuters) - Cash prices for top quality U.S. hard red spring wheat are soaring as the rain-delayed harvest throws up lower-than-average protein levels, and traders and analysts said outsized premiums are likely to continue for months.

Farmers are expecting the largest harvest in four years as wet, cool weather swells yields. But that has hit protein levels for some of the crop, forcing millers and exporters to chase supplies of higher protein product to ensure quality.

In samples from the first 43 percent of the harvest tested by North Dakota State University, the average protein content was 13.6 percent, matching the 2013 average, but below the five-year average of near 14.0 percent. One Minneapolis trader said he expected a final average approaching 13.2 percent.

"Spot market bids are pretty aggressive. It's got to be that (millers) are trying to get their hands around it," said Carrol Duerr, general manager of the Colfax Farmers Elevator in Colfax, North Dakota.

Some millers and exporters are looking to the 2013 crop for supplies of higher-protein wheat as the lower content of the 2014 harvest became evident. Many exporters likely committed ahead of harvest and now have to find adequate quality supplies.

Cash market premiums for spring wheat with 15 percent protein - higher than the standard grade of 14 percent - have surged to more than $6 a bushel, or roughly double the price of December spring wheat futures 1MWEZ4 on the Minneapolis Grain Exchange, which settled Friday at $5.78 a bushel.

The premium has risen from $5 a bushel two weeks ago and soared from $2.50 a month ago.

The premiums should remain elevated for months, possibly until the 2015 spring wheat harvest, as the crop in Canada, where harvest has been stalled by rain, is also expected to have high yields and low protein.

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8 Replies
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Advisor

Re: $6 premium for 15% hi pro wheat.

I had a dream that my protein was low and I said bull slacka it's never low! Then I woke up.

Pretty funny eh Smiley Happy
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Senior Advisor

Re: $6 premium for 15% hi pro wheat.

We're getting into a weather rut out here. We can grow HRS if we are hot and dry enough. Maybe these trends will continue. Maybe I'll try a field of HRS next year.

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Senior Contributor

Re: $6 premium for 15% hi pro wheat.

Raise it organic and I can buy all of it @ $20.00/bushel fob farm.
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Veteran Contributor

Re: $6 premium for 15% hi pro wheat.

Have them buy my hrww. Take 12.00 for it average test 59 lbs. have 10437 bushels.
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Veteran Contributor

Re: $6 premium for 15% hi pro wheat.

Miller has it right now tho. But with some Isis terrorist assistants we may get it back!! Not sold yet.
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Senior Contributor

Re: $6 premium for 15% hi pro wheat.

Is it Organic?

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Senior Advisor

Re: $6 premium for 15% hi pro wheat.

Montana grows a fair amount of organic hi pro. The Palouse organic production is miniscule as far as I know.  High production areas are too weedy and summer fallow at the lower drier elevations might be able to do it but haven't heard many claims of it.

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Senior Contributor

Re: $6 premium for 15% hi pro wheat.

Our largest organic grower in Umatilla County (3200 acres) averages 70 bu/acre with organic hard red spring and actually yielded 90bu/acre in 2012. Typical SWW yields are 90 bu/acre.
This year's protein levels were quite high in Oregon and Washington. Much high than our Montana growers and the quality was better. HRS protein in the Willamette Valley was 14.5%, Umatilla county 12.8 to 16.3%, eastern Washington 15.6%. We find that varieties Buck Pronto and Espresso work best for the organic growers to attain both yield and protein.
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