Many times, all it takes is one commodity to have an influence, that causes them to fly in one direction or another and take everybody along for the ride. Even though it is a sleeper commodity in Iowa, wheat is the one that is doing it today. We have gotten news that has jumpstarted its climb but also adds to the question marks surrounding the trade.
To kick things off, India finally made good on its decision to start limiting its exports of wheat from private sellers. Allendale?s Greg McBride says there are a few reasons for this. At first, it was reported to be in response to extreme heat, but Mc Bride says it is more of a matter of regulation.
This export ban is only for sales made through private sellers, not through the government.
Another interesting factor is that Russia seems to be having a surge in exports of wheat. They are reportedly sending out three times what they did last year. Now, while McBride won?t come out and say it, there is a lot of speculation on where that wheat is being sourced from during their invasion of Ukraine, a large wheat producer.
If you remember almost two months ago, we talked with Ukrainian Farmer Nick Gordiichuk told us what was happening.
Of course, what is happening with U.S. wheat isn?t much to write home about either.
These factors are continuing to give wheat a surge that will eventually affect consumers in the market, but that is nothing that we haven’t experienced before. The bigger worry is what will happen when this surge comes to an end.
