Canadian Producers Increase Reliance on Wheat Sales

Both May spring wheat and December spring wheat futures reached fresh contract lows Thursday's session. A look at the action in the May/July and December/March futures spreads shows a sudden change in commercial sentiment since March 25, with the old-crop spread moving from a 3 1/2 cent inverse on March 25 to a 9 1/4 cent carry as of the April 4 close. This move -- which saw the nearby May contract fall from a high of $5.76 3/4/bu on March 22 to Thursday's close of $5.27 1/4/bu, a move of 49 1/2 cents -- is viewed as perplexing on a year when United States wheat acres are estimated to be the lowest on record and soft red winter prices could find support from more rain in the Midwest forecast.