WASHINGTON — While attention has focused on the mostly bearish soybean market news, a welcome trend in wheat prices has been underway. While the economics of wheat production in recent years has not been overly positive – including historically low prices in 2016 and a downward trend in U.S. wheat acreage- corn and soybean production benefited from a small increase in wheat acreage in 2018.
Stronger wheat prices have been an important – and perhaps overlooked – improvement in the farm economy. With winter wheat planting beginning soon, the improved economic outlook will be on producers’ minds. Specifically, higher prices and an improved wheat-to-corn price ratio will position wheat in a much stronger budget position than in recent years. Wheat acreage will be key to watch for 2019.
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