More Wheat Will Be Planted

July 31, 2010 02:18 PM
 
Wheat prices are up $1.60 since July 1, market expert Jerry Gulke notes. “What if Russian imports 1 to 2 million tons instead of exporting 3 to 4 million? If the economy picks up, demand could be even better yet. At these prices, governments don’t say ‘it’s too expensive.’ They say ‘I better buy more now if I don’t want food riots.’”
 
Prices are getting to an area where wheat can compete with corn, he says. “Double-cropped beans and wheat certainly can. And with a likely early harvest corn/bean harvest this fall, the ground will be open for planting.” 
 
Gulke says there could be a boost of 3 to 4 million acres of winter wheat. “I know people—I may be one of them—who haven’t planted wheat in several years, but will this year. That means those acres need to come out of corn or beans. And USDA just opened the CRP again—another draw for acreage.” 



 
For Gulke’s charts, visit www.gulkegroup.com, email Ashley@gulkegroup.com or call 707-365-0601. 

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