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Palouser
Senior Advisor

Wheat solidly supported by corn and being fed

Which is entirely a logical outcome. China has been buying wheat for feed and now releasing some domestic stocks for the same use. Black Sea wheat is used domestically for the same purpose as they simply can't grow enough corn for their needs. Wheat is best suited for the steppes and barley has not been planted in the usual amounts in Ukraine this year. On the other hand hi pro wheat is in demand and supplies contin ue to tighten.

 

No doubt there will be corrections in the high flying corn market, but anything less than ideal conditions will probably lead to slow ratcheting up.

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p-oed Farmer
Senior Contributor

Re: Wheat solidly supported by corn and being fed

Palouser.......

 

Don't you think that with the corn situation as it is that the draw down on the world wheat supply will be dramatic?....... I am hearing that the e plants are now looking at wheat for there plants..... Interesting world that we live in......p-oed

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Palouser
Senior Advisor

Re: Wheat solidly supported by corn and being fed

I don't know that increased use of feed would be what I call 'dramatic', but 'incremental' might be the word. I'll guess that bottom feeder buyers for human consumption will have more competition from feed use, especially from the Black Sea region.

 

The key to how intensly wheat is used for feed will probably still depend on the corn growing season. If we were to have a bad crop for some reason I'd guess Asian markets would lean more heavily on wheat.

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