Is Wheat Over Valued?

As a farmer you have to deal with many variables that are out of your control.  Harvest in North America is almost complete and now farmers are faced with dealing with the commodity markets.  Most farmers are no doubt following the grain and oilseed markets on a daily basis but now it becomes more of a focus.

There are several market analysts discussing that wheat may be overvalued on a fundamental basis.  When analysts look at ending stocks they are seeing a possibility of an inflated price.  Is fund money the only reason prices are where they are?  How did we move from ending stocks being so small to now we are flush with wheat in two years?

I stopped at the Canadian Wheat Board in Winnipeg and chatted with Bruce Burnett, Director of Weather and Market Analysis about his outlook for wheat and durum.  Bruce answers all these questions and more.

See more Canadian Wheat Board content

 

Shaun Haney

Shaun grew up on a family seed farm in Southern Alberta. Haney Farms produces, conditions and retails wheat, barley, canola and corn seed. Shaun Haney is the founder of RealAgriculture.com. @shaunhaney

Trending

Western Canadian Farmers Keep Fingers Crossed on Open Spring — Drew Lerner

The 2016 harvest seems difficult to forget but it's time to forget and focus on the spring that lies ahead. It's bitterly cold across the west this week so it's hard to think about spring weather, but for anyone that has crop left out in the field you are definitely hoping for an open, dry…Read more »

Related

Leave a Reply