Wheat, too

[John_Walter]

Wheat futures are following corn upward here at midday.  Traders are citing limited supplies of high quality wheat globally, as well as continuing concerns about  the condition of U.S. winter wheat.

In Europe wheat futures closed higher after once reaching a new record in the March contract, approaching its record of EUR295/ton. Prices there were supported by the USDA crop report today, newswires reported.

Thoughts on where this market might be headed, and how the acreage battle looks after today?

John

[Pupdaddy]

I'm under the impression..that as long as corn goes up..wheat has to follow. There isn't a lot of bread quality wheat out there in the world..even though stocks aren't really tight. If corn is going up..because livestock and ethanol are consuming it, then the feed quality wheat will go up as well.

..What I'm wondering..is should we be looking at this basis level now..and asking ourselves.."do I basis contract wheat so they can't refuse to buy it at lofty levels like they did the other year?"

[Boarsnest1]

With Dec corn at $6+ and Nov beans approaching $14, I am not sure the acreage battle will be in the midwest. A lot of producers that took yields hits with thier corn on corn the last two years are perfectly content with $14 beans. So that leaves the battle everywhere else. Southern producers may lean towards cotton. A lot wheat that comes into spring will have option of being torn up, easy to make that choice when considering corn, beans or cotton. Who wins the battle? IMO corn and wheat are the losers when it comes to acreage.  Cotton and beans will hold thier own.  I think corn rationing  has been slow since so much was forward priced. Once the March contracts fill, surely April prices will put some pressure on users.

[jcf97]

I know the elevators do not like the low protein HRS wheat.  The discounts in the northern RRV are $.20 a fifth from 14pro to 13pro.  Another $.20 a fifth from 13pro to 12pro.  Then $.10 a fifth from 12pro to 11pro.  So it is a real kick in the pants when you are getting $2.00/bu or more off for protein discounts.   Especially when you are hauling wheat you sold earlier in the year.  Good bushels last year but poor protein.