Bob Utterback, founder of Utterback Marketing Services, has seen more farmers sell wheat at and above the $6 mark than he has in a long time.
The way prices are right now, Mark Feight, International Agribusiness Group, LLC., thinks there is room for wheat to get pushed higher, but two things should happen: a corn weather scare in the U.S. and continuous weather problems in the Black Sea region.
Out of the two scenarios, Feight believes the Black Sea region is in the “throes of a problem” when it comes to weather.
According to Utterback, if subtropical storm Alberto hadn’t made its way through the heart of the Corn Belt, corn would have closed “significantly higher.”
“This market could get very bullish very quickly real fast with all that hot heat out in the Plains that would move into Illinois,” says Utterback. “I think the Russian crop has got the damage—we’ve got to prove it here.”
Hear why Feight says there’s three reasons why the Black Sea region is important on Markets Now on U.S. Farm Report.