The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
Historically, wheat prices have generally been higher than corn prices and sometimes the difference can be major. In many years, wheat could be $1 or $2 higher than corn. This is due to two main reasons:
However, during many days in 2011, corn has now overtaken wheat in price. This has been caused by these major factors:
In a recent Wall Street Journal article, it mentioned that due to this flip-flop in prices, many consumers of corn for feed such as poultry and hog producers are now blending in more wheat into their feed rations. Also, wheat can be used to make Ethanol and some Ethanol producers are now blending about 5% wheat into their mix.
As long as wheat remains cheaper than corn, this trend may continue.
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