After four consecutive years of record wheat production in the world, we’ve become accustomed to adjectives like “burdensome” and “massive” describing wheat supplies.
However, it’s looking like 2017 could break that trend, according to Mike Krueger of The Money Farm.
“That pattern is starting to change,” he says in the interview below, filmed at CropConnect in Winnipeg last week.
Krueger describes wheat as a potential “sleeper pick” for 2017, partly because U.S. acres will be down significantly.
“U.S. crop production for wheat alone could drop 14-15 million tonnes, plus there are some little problems elsewhere in parts of Western Europe and the Black Sea region,” he notes. “It just seems we’re going to get off that record production pace and demand just continues to expand every year.”
We discussed the risk with wheat coming out of dormancy early in the southern U.S., soybean’s gravity-defying run in the markets, whether he sees President Trump’s policies having a major impact on demand for North American crops and more: