Wheat Market Expected to Rebound Slightly With Lower Acreage

A USDA report last week showed expected wheat acreage drop by more than 10 percent, which could mean good things for wheat prices later this year.

Economist Rob Johannson said the cause of the drop in production is tied directly to prices.

“And it’s difficult for producers to justify putting that wheat in the ground if they don’t expect to break even.”

Wheat acreage is down to the lowest levels seen in more than 100 years.

Outlook Board Chair Seth Meyer said another cause is the better profitability of other crops.

“Competition from other crops, corn, soybeans, those crops have seen better productivity gains and that has pushed wheat out in some instances.”

The good news is that USDA added a dime to the all-wheat average price to their forecast.