Volatility Seen in Spring Wheat Markets

As the new year approaches, spring wheat has shown more volatility, with bids ranging from $9.90 to $10.13 on a national level. The reason? According to North Dakota Wheat Commission Market Director Jim Peterson, buyer concern and pipeline tightening as producer selling slows down.

Additionally, positive developments on the world stage tends to boost spring wheat. Canadian rail line flooding in the Vancouver area caused some port delays and hard red spring wheat shipments through the last quarter are down 35% from last year. Also in world news is the Russian export tax leading to increased anticipation for better U.S. exports in the early part of 2022 due to excellent worldwide demand. Domestically, some U.S. bakeries are still struggling to keep adequate staffing, leading to additional uncertainty. Other wheat markets like pasta are also seeing cutbacks in certain sectors.

Read more on spring wheat volatility here.