04/17/2024

U.S. Wheat Farmers Face Bleak Crop Economics

This is related to grain oversupply

Profit is growing further out of reach for U.S. wheat farmers and many do not expect to break even in 2024 as ample global supply keeps prices around their lowest in nearly four years at the same time costs including equipment and transport remain high.

The current state of the U.S. wheat market will hit winter wheat farmers in the Great Plains hard. They may lose money despite having what looks to be their best crop for some time after three years of drought sapped yields and forced farmers to abandon wheat.

U.S. wheat prices have plummeted as cheap supplies from the Black Sea and Europe replenished global stocks of the staple grain, and as plentiful corn harvests worldwide pressure the entire commodity grains complex. U.S. winter wheat will be the first crop to be harvested in a year when U.S. farm income is expected to plummet, signaling tough times ahead for rural America.

Please select this link to read the complete article from Reuters.