The tight global supplies of high protein wheat are pushing grain prices higher. CHS Hedging market analyst Kent Beadle says there’s concern about millers and bakers finding enough. “There isn’t enough high quality wheat in the world right now with the short crop in North Dakota and Canada. There’s a smaller-than-anticipated crop in Russia. All of those things combined to send the market surging higher. When you look at the charts, you have to think this could move high as we go past major resistance points.” Beadle says the milling industry doesn’t have many options. “Demand is fairly inelastic. They want to make the bread products the market demands. They’re willing to pay for that wheat in order to make flour. We’ve had the situation before where the market moves a long way to get farmers and elevators to move wheat in storage.”
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