News

Corn and wheat both intriguing markets

An analyst says while the market seems to be focused on soybeans, there’s an intriguing story taking shape for both corn and wheat.

Angie Setzer, vice president of grain for Michigan-based Citizen’s Elevator, tells Brownfield the world is starting to recognize there is no longer an overabundance of wheat.

“The U.S. is going to be one of the largest suppliers, but if you look at the overall major exporter situation in wheat, we’re at the second-lowest on record for carryout.”

She points out wheat and corn are closely tied commodities.

“So that’s a very interesting thing that we have to continue to pay attention to is strength in wheat tends to be correlated with strength in corn.”

Setzer says the current spread between corn and wheat prices is historically wide.

“Typically you would see wheat about $1.35 higher than corn.  It’s working $1.85 (and) closer to $2.00 anymore.”

She says that alone will help maintain support for the corn market, even if wheat prices back off.  Setzer, who spoke to Brownfield at the Iowa Women in Ag Conference Thursday, reiterated weather will continue to be the main influence the duration of the growing season.