Wheat Prices At 8 1/2 Year High

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Wheat futures on the Chicago Board of Trade are at eight and-a-half year highs.

University of Minnesota Extension grain market economist Ed Usset tells Brownfield the main driver is supply.

“I think (everyone) is well aware that the Northern Plains, particularly North and South Dakota, Montana, had a very tough year in production. And that took down the size of the spring wheat crop in the U.S.”

He says there were also production problems in other major wheat exporting countries like Canada and Russia, which has ignited the rally.

“(Prices) are trending higher in a strong way, and (I’m asking) what’s going to stop it? What’s new in the story that’s going to stop it? And I have a hard time putting my finger on that.”

Wheat futures gained more than 20 cents Monday following announced sales to Saudi Arabia and Egypt.