Are we Setting up for an Increase in Wheat Prices?

Are we Setting up for an Increase in Wheat Prices?

Stories from across the world that are worth paying attention to

If you are on twitter, or pay attention to any agriculture news resource, you have likely heard about the tough times that our Western Canadian wheat producing neighbours are experiencing.  Growers throughout the west have experience a harvest like no other, with constant snow threats in certain regions.   Australia has been experiencing drought, creating the lowest yields in quite some time, and Russia/Ukraine are also experiencing challenges.

In a world full of wheat production, these types of scenarios are important for us to pay attention to.  They can define whether we are in for long term higher pricing for wheat, or short term rallies that need to be taken advantage of.  Marketing can be the key to success with the production of any crop, and wheat can experience more swings and shifts than other crops.

Below are a few of the key stories that caught my eye lately.  Are we in for higher wheat pricing for the long term?  It’s hard to say.  But, without knowledge of the world around us, we can’t make an informed marketing decision.  Take some time and give these stories a look.  They just might influence your current wheat marketing strategy.

A story for the Soft Red Winter Wheat producer to pay attention to in the coming months:

https://www.bloomberg.com/news/articles/2019-10-28/u-s-winter-wheat-acres-look-set-to-drop-to-lowest-in-110-years

Russia and Ukraine are set to possibly stop exporting the same amounts of wheat this year:

Australia is suffering through prolonged drought conditions creating less wheat than expected:

https://www.afr.com/companies/agriculture/drought-shrinks-grain-harvest-to-decade-lows-20191020-p532cr

Western Canada suffering from snowfall during harvest:
https://www.producer.com/2019/10/heavy-snowfall-puts-brakes-to-manitoba-harvest/

About the Author

Rob has been involved with C&M Seeds since 1999, working in many roles throughout the organization. He now is the Sales and Marketing Manager and a self proclaimed "wheat geek".