Low Acres, Drought Reduce Wheat Yields
Futures have given buyers opportunities to buy at lower values
The potential for an explosive upside move for United States wheat prices is high due to record low hard red winter wheat acres combined with U.S. Great Plains drought and late hard red spring wheat planting.
The High Plains Journal reports compounding the price risk are the dry conditions in Canada and questions around Argentine wheat production post the 2018 drought.
Futures have given buyers opportunities to buy at lower values and those opportunities should be taken advantage of. Likewise, producers should take advantage of market rallies and forward selling opportunities if it meets their profit objectives.
Read the full report here.