According to the USDA, only 45 percent of the hard red spring wheat crop is in good or excellent condition.
This stress could ultimately lead to lower yields and a sharply lower harvest this fall.
Hard red spring wheat is a high-protein variety used in bread production.
National stockpiles rose by 1.79 million barrels last week, as U.S. drivers are burning less fuel.
Meanwhile, domestic crude oil production continues to stay strong, and refineries are processing oil into gasoline, diesel fuel and other products, resulting in a glut of the refined products ahead of the summer driving season.
Fed raises rates again In a widely-anticipated move, the U.S. Federal Reserve raised interest rates this week, moving the benchmark rate over 1 percent for the first time since 2008.
These moves show signs that the Fed is confident in the U.S. economy’s strength, but these measures may also affect markets.
After the most recent announcement, the U.S. dollar rose in value and gold fell to $1,250 per ounce.
Walt and Alex Breitinger are commodity futures brokers in Silver Lake, Kansas.
They can be reached at 800-411-3888 or www.paragoninvestments.com.