Wheat prices soar

Wheat futures prices have been soaring higher due to drought in the Former Soviet Union as well as Canada’s excess moisture problems. The rising market gained momentum yesterday with the announcement by Russia that it’s placing a temporary ban on wheat exports. Wheat futures on the Chicago Board of Trade closed yesterday at $8.29 a bushel. Back in June, the price was only about $4.50. Market analysts say the world stocks to use ratio for wheat isn’t really that short, certainly not as short as a couple years ago, but wheat is zooming higher anyway. Futures have now reached a 23-month high. No one can predict with any certainty where wheat prices will go in the weeks and months ahead. Maybe they’ll go higher. Maybe they’ll drop back. The Canadian Wheat Board is alerting producers that there are pricing options available to lock in some of the current rally. If the rally is short-lived, it won’t be reflected in the annual pooled price. Right now, with a Fixed Price Contract, producers can lock in a wheat price that’s about $1.50 a bushel higher than the current Pool Return Outlook. The CWB has reps available to explain the various pricing options. I’m Kevin Hursh.

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