Wheat price outlook good into next year
A market analyst watching the price of wheat says the outlook is good and growers will probably plant more acres in 2018.
Kluis Commodities president Al Kluis tells Brownfield drought in the Dakotas and Montana is supporting wheat futures, although the latest USDA report could’ve been friendlier.
“I was a little bit surprised the USDA didn’t change harvested acreage in either North Dakota or Montana, and the number came in quite a bit larger than what traders (like) myself had expected. So we’ve seen the market lose nearly $1 dollar per bushel right before and after that report, but now we’re trending back higher.”
He says prices seem to be range-bound between $7.40 and $8.50 per bushel.
Kluis encourages farmers to take advantage of a wheat market that hasn’t been this good in at least five years.
“So if you look ahead to next year, you can begin to put on some pretty good hedges, lock in some of those 2018 crops up in the area of around $7 dollars. Historically, that’s a pretty good hedge. And I do think we’ll see a big increase in spring wheat acreage in the U.S. and Canada next year.”
Kluis says a lot of wheat carried over from 2016 and even some from 2015 recently sold into this rally.
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