Bullish and Bearish Signals for Wheat

The Potato Expo is happening in Las Vegas and we have more than 2,000 attendees enjoying an amazing Trade Show and many great speakers. Earlier this week, RaboAgriFinace Economist of Grain and Oilseed Steve Nicholson shared what is happening with wheat

Nicholson: "Wheat is the step-child right now. What do you do with wheat? The U.S. has three problems: world wheat stocks are at record highs, U.S. wheat stocks are at pretty big highs and US wheat exports are flat at best and really declining. The US dollar hasn't helped that because from a buyer's standpoint it makes our product more expensive. At the same time while we've been trying to push wheat to the world, you have the Black Sea and Europe — the two big primaries — really pushing a lot of cheap wheat to the world. So our producers are out in the cold. The fact that we export 30 to 40 percent of our production in the U.S. so wheat is probably the biggest loser in this as far as price. Wheat if you look at Chicago Futures it has bottomed at $4.50 — it is like corn. Is there much more downside? Probably not. Is there some upside, yes, if there is a problem in the world; but we don't know that til we get there.Wheat acres are down so maybe that is a bright spot for wheat going forward, but continues that long decline of wheat acres moving forward."