US: Weather and geopolitical concerns add to the volatility amid strong wheat prices
Wheat
United States
Published Feb 5, 2022
Tridge summary
Commodity crop prices continue to remain strong across the board as weather and geopolitical concerns add volatility to markets, according to a Texas A&M AgriLife Extension Service expert.
Original content
Mark Welch, AgriLife Extension grain economist, Bryan-College Station, said drought conditions in both hemispheres are raising questions about global crop yields while troops amass in a region that supplies one-third of the world’s wheat. Welch said commodity crop prices are better compared to this time last year. Prices provide an improved opportunity for producers to profit even with the higher input costs factored into production budgets. “We’re seeing competitive prices among all commodities, and there are a lot of questions surrounding various crops here and across the world,” Welch said. “These questions will likely play a role in Texas producers’ planting decisions. Costs are up as well, but commodity crop prices are still good relative to those increases.” Welch said planted acres of wheat across the Southern High Plains, including much of Texas and Oklahoma, were in “rough shape” due to drought. There have been reports of emerged wheat fields being lost to dry conditions. ...
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