Current S and D's for wheat look pretty wretched, both US and World.
I'm not sure what the impact of the significant quality problems will be- my guess is that since the world has ample supplies it will tend to just make buyers shy away from US origin.
And, looking at the FAS historical numbers there is only one year in 20 when the world balance sheet tightened as much as it would require for next year to get tight.
BTW, thatwas, I believe 2001-02. World wheat tightening was a prerequisite for the corn bull that developed later- wheat is always the elephant in the room on corn- it will over/underperform its own fundamentals depending on the wheat outlook. We've now rebuilt world stocks to pre-boom levels.
I expect the corn balance sheet to tighten up but expect it to underperform fundamental expectations based on wheat and general commodity punkiness.
