Feed Usage Implications of Corn - Wheat Spread
Oct 12, 2011
Today's USDA WASDE report held no surprises for corn and beans, but wheat stocks came in well above expectations. There is a glut of wheat in the market right now, with global wheat stocks at 10 year highs. You can see from our corn - wheat spread chart below that after today's trade we see DEC corn at an 18 cent premium over the DEC Chicago wheat contract.
With this divergence between these two markets, livestock producers may find opportunities to substitute wheat in their feed diets. High stocks should keep wheat well supplied in the market place and this substituion will only further hurt a weak demand scenario for corn. To keep track of this and other spread opportunities in real-time from your home computer, take a demo of the Firetip platform!
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PLEASE READ OUR RISK DISCLOSURE.