US Wheat Market In a Holding Pattern

As the US wheat market remains comfortable with current supply levels. Crossroads Co-op Regional Manager Brian Irey, says the lack of export demand continues to limit any upside movement.

“Wheat is a very interesting commodity. Right at the moment, our exports have been just extraordinary. And I would, I don't want to say we're going at a break neck pace, but we're we're exporting wheat at an ex at a pace where the USDA probably needs to add 100 million to exports at some point down the line. Here, our crop is in pretty good shape. The one that was planted this fall.”

Irey explains, most US wheat states are in good shape when it comes to moisture, but global supply and demand pressures continue to weigh in on the market.

“I think global implications are we're keeping a cap on the wheat market. Australia's crop has gotten bigger. Argentina's crop is in very good shape, and the Russian crop was bigger than anticipated. So I think we're seeing a little bit of pressure on wheat from foreign countries, but we really can't complain about the the export pace and usage here in the US. I think we just have a lot of wheat stocks that we've got to get work through, and that's keeping us capped on the wheat side here for the moment.”

Brian Irey with Crossroads Co-op.