Winter wheat damage doesn’t move the markets
The chief commodities economist with Stone X Group tells Brownfield confirmation of a bad wheat crop in Kansas had very little impact on the markets.
Arlan Suderman says reports of milling wheat being imported from eastern Europe to the United States killed the wheat market on Thursday, proving alternative supplies can be sourced cheaper from other places.
“We have a lot of soft red winter wheat being blended into mixes now as well, displacing hard red winter wheat and that too is reducing demand for hard red winter wheat.”
Suderman says the decline in wheat prices is part of a bigger sell-off happening across the commodity markets caused by increased competition and a stronger U.S. dollar.