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Extreme Heat Threatening Wheat, Canola Crops - Driving Up Prices

Scorching heat across the Western prairies of Canada and the U.S. is threatening the harvests of both spring wheat and canola, and is driving prices for the crops that survive to record highs.

Prices for spring wheat were already high before active contracts for spring wheat rose to $8.34 per bushel on the Minneapolis Grain Exchange - its highest point since 2013.

Spring wheat typically carries a higher price compared to winter wheat due to its superior protein content, however, due to the extreme heat, the quality and protein content of this year’s spring wheat is being called into doubt, as only 20 percent of the U.S. spring wheat harvest is in good or excellent condition. At the same point last season, 70 percent of the harvest was considered to be in good condition.

Conditions may be even harder on canola, which doesn’t do well in hot or dry conditions. This year’s Canadian canola crop is expected now to be much smaller, driving the spot price for the crop to a record high of more than $800 per metric ton - its highest point since 1982.


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