American farmers could face headwinds from Brexit-- the exit of Britain from the European Union--because the move is already making ag exports cheaper from Britain and other countries with weaker currencies.
“It’s going to take time to play out … (but with a much lower British pound), it’s not good for agriculture,” said Jerry Gulke, president of the Gulke Group in Chicago, speaking with Farm Journal Radio’s Pam Fretwell.
“That makes us less competitive with South America and less competitive with Britain and Europe," Gulke said. "We're not awash in grain, but we’ve got more grain than we need, and now it’s become a matter of the lowest-priced seller, not the lowest-priced producer."
Just this week, Glencore shipped the largest ever shipment of feed wheat from Britain.
On the home front, competition is heating up between lower-priced wheat and corn for livestock feed. With wheat yields and stocks at record highs, prices have sunk beneath corn, persuading some farmers to replace some corn with cheaper wheat for feed, Gulke said.
Listen to his full comments here: