2022 Wheat – WEST AG INFORMATION NETWORK

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2022 Wheat

Some potential good news for US wheat farmers After five years of wheat supply exceeding demand. We have reached a year where the reverse is now true globally. Speaker1: Yes, that’s a recipe for decent wheat prices. According to Agriculture Department chief economist Seth Meyer, a year ago rising corn and soybean prices dragged wheat down with them. This year and through 2022. Meyer says wheat could support corn and beans. Today, globally, we begin the new marketing year with global supplies six million tonnes lower than the previous year. Global wheat utilization is expected to increase and the result: a possible 4% drop in global stocks by the end of the marketing year, so wheat prices are being pushed higher here. Meanwhile, in the United States this past season, Speaker2: The winter wheat crop turned out to be a good crop, not a bad crop, compared to much of our winter wheat crop. spring really hard hit by this western drought. So you can see that some of the spring wheat prices are really showing strength relative to winter wheat, but the wheat story is really global, where consumption exceeds production for the first time in several years, and that’s what gave that strength to the wheat. Speaker1: And as everyone knows, American wheat farmers see this strength. The average price for the 2020 crop at 21 was $5 and five cents a bushel for the 21 at 22 crop. Usda projecting $7.05.

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