The wheat market has seen an uptick in prices, and to Elaine Kub, author of Mastering the Grain Markets, the climb could keep building in Minneapolis contracts.
“I think we’re going to end up with actual rationing prices,” said Kub. “We could be headed towards $8 or more to really ration down the demand for this very small quantity of hard red spring wheat that will be harvested this year.”
Kub understands this first hand. As a resident of South Dakota, she sees farmers zeroing out acres already. Some areas of the state have received little rain fall, but it’s too little too late for the spring wheat crop.
“Because it was drought stressed, it prematurely headed and basically it’s on the same story with the hay crop too,” said Kub. “If we didn’t get that rain in May, the tonnage is kind of gone at this point.”