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Growing demand for feed wheat

An economist with CoBank says low prices are generating additional demand for wheat as a feed ingredient.

Tanner Ehmke tells Brownfield there’s an abundance of wheat in the Central and Southern Plains this fall.

“So livestock producers are making the decision of whether this wheat crop that is in ample supply is going to be able to work into their feed rations.  Price-wise, it is very attractive.”

Cash prices for both hard and soft red wheat are running 30 to 40 cents below corn on a per bushel basis.

However, Ehmke says price is not the only factor livestock producers should consider.

“You really have to be careful about how you start incorporating different feeds into rations.  And varying the feed ration formulations can be hazardous to an animal’s health, so it all has to be done in conjunction with an animal nutritionist.”

Current USDA forecasts indicate wheat feeding and residual use will climb to 260 million bushels in 2016, up from 152 million last year.