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bit north of London, UK | Hi Mutt,
help me understand by critiquing this rambling;
Corn is king in most of USA. Soya is queen. In Europe however wheat is king. So i would be typical in having a chunk of 11 harvest sold, and reving up to increase acres to wheat, and to push it hard with 10-20% extra N etc etc.
Regardless what wheat acres the US market does or does not buy, if Europe gets a good growing season, we will again bury ourselves in wheat.
So the way i see it, if your corn price is rubbish you might run the slide rule over wheat....but if you are happy with corn price YOU and your market does not have to worry about buying wheat acres.
Speaking very generally, and i am aware that there are large tracts of land where wheat is no 1 crop. These acres, by definition, are already bought? Or is that the point, even in NW Kansas, corn will push wheat acres down?
Or coming at it from another angle, if the US markets do not buy corn acres, then noone else is really going to pick up the baton and run with it. So the market better be happy to live with whatever you guys produce / have in reserve stocks.
If the US market does not buy wheat acres, its not such an issue by a long shot.
John
Edited by JWC 8/8/2010 17:11
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wheat prices
