We don’t spend a great amount of time discussing wheat, because there isn’t a whole lot of it in Iowa when you compare it to the number of acres of corn and soybeans. However, it is still one of the major commodities in the world as we look at its global demand. It certainly has been in the news a lot with Russia’s invasion of Ukraine and droughts in India and Australia; the demand for wheat is going to need a steady supply.
The United States is a major player in the global wheat trade, as we have a large growing area in the Plains states. The market here has been just as volatile due to global impacts, but also the droughts we have battled in our growing regions for a few years now. However, this year has seen some more rain than the prior two. That means we should be in shape to meet demand around the world.
Vince Peterson is President of U.S. Wheat Associates, and he talks about the global factors affecting our markets, and how the U.S. is responding.
As we said, our drought has taken its toll on the wheat market in the past and our wheat has been at a premium in the global market.
Other classes of American wheat however fared better in world markets, for instance, Durum exports were up 109 percent due to improved production and increased sales to Algeria and the European Union.
Furthermore, Peterson is optimistic about U.S. farmers’ opportunities in world markets.
Peterson is celebrating America’s ability to produce high-quality wheat to meet the demand of global consumers.
