Naomi Blohm, senior market adviser, Stewart-Petersen: High Plains Journal columnist Naomi Blohm gives her outlook on where the wheat market is heading, and help you lock in a profit on the rest of your 2017 crop!
A glut of wheat in the world has dogged prices the last two years, but consumers are slowly chewing their way through wheat stocks. Prices should rebound sooner rather than later, said Naomi Blohm, senior market advisor for Stewart-Petersen.
“The worst of the prices are behind us. That’s the good news,” Blohm told growers at Wheat U in Wichita, Kansas, in August.
Since their peak in 2007-08, wheat prices have tumbled. For the next several months, Kansas City Board of Trade wheat prices will be locked into a sideways, back-and-forth tussle between $4.50 and $5.25 a bushel.
The fundamentals of wheat pricing are shifting, Blohm said. Corn and soybean acreage is on the rise, pulling acres out of wheat production. That’s happening even in traditional wheat regions, like Kansas, South Dakota and North Dakota. However, corn production in these fringe states is affected by drought and heat, which has reduced yield potential.