Wheat as Good as Gold

Monday Mar 9th, 2009 32 Views Idaho Ag Today

If it’s true - as some believe - that the most recent stimulus will lead to a weaker dollar - there could be good news for agriculture as it relates to exports. The reason: A weaker dollar makes U.S. products more affordable. And there are drought conditions in some of the biggest wheat growing countries in the world. Here’s Blaine Jacobson, Executive Director of the Idaho Wheat Commission: “China is the largest wheat grower in the world. All of it goes to their own people. They are the largest wheat consuming country as well. If they were put into a position where they needed to import even 15% of the crop, it would raise wheat prices around the world. If you go back into December and January, things were looking quite grim in China, their top wheat producing province was way short on moisture."

Dr. Mark Welch, Grain Marketing Economist. “ Particularly for our wheat market right now. Argentina had a reduction in their wheat crop this past fall. The Australians still have drought conditions they were struggling with. So we haven’t seen a buildup in those better quality, milling quality wheat supplies like we have in the high plaines, our hard red winter wheat, and so anything that would make our wheat more affordable would be good.”