Wheat Market Overview

Wheat Market Overview

Wheat Market Overview

I’m KayDee Gilkey with today’s Northwest Farm and Ranch Report.

Last week I visited with Farm Direction President Kevin VanTrump during the Spokane Ag Expo and Pacific Northwest Farm Forum where he gave a market overview for the wheat market and says there has been a shift in worldwide demand for wheat flour has become largely stagnant and feed usage has increased.

VanTrump: “You know, the wheat market from a view of 10,000 feet: demand hasn’t really been there as far as in food per say like it was when India struggled and some the lower class societies in India and China were moving up the food chain. That was driving the food demand for wheat. Now all of a sudden that has tapered off and what we are seeing is the demand for wheat is only from a feed perspective so as an alternative to corn primarily. So the guys are watching corn and playing wheat off that corn market.”

This switch in focus from wheat as a food to wheat as feed will only tie it closer to corn as VanTrump explains.

VanTrump: “That’s where we are right now. Until that changes, that is how it will be how it will continue to play the game. So when wheat gets about $2 outside of corn, it generally runs into stiff resistance. Back when it gets within 30 or 50 cents it starts getting blended in with feed rations and we see more demand.”

VanTrump says the market is changing with continued volitility but increase supplies as technology like water management is transferred to other countries like the Black Sea region, Australia, Canada and India.

He adds there will be increased competition for world feed demand next year as the world’s corn supplies will likely rebound. 


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