Burdensome wheat supplies will depress prices in the short term, but the underlying demand for grains bodes well for the long-term market outlook, says Mark Welch, Texas AgriLife Extension grain marketing economist.
Welch discussed wheat and grain outlooks at the recent Big Country Wheat Conference in Abilene.
He said the burdensome supply limits U.S. producer access to export markets. Also, anticipated record large corn harvest adds downward pressure on wheat, limiting the amount of wheat used for livestock feed.
“But we have a growing population that wants to eat better,” Welch added. That means a more optimistic outlook for Texas wheat production. And one poor production year in one crucial production area and the supply situation can be reversed, he said.
