Grain Market Update

Wheat prices are back to levels we have not seen since mid-July and are currently trading above $9.00 July 2023 futures. At these levels we have a projected profit of $80/acre. Ukraine grain exports remain robust since the opening of export business in the Black Sea Region, but we are still behind last year’s export volume by 46%.  A decrease in export volume coupled with the dryness in the plains region continues to feed the bulls to run the market higher.  On the flip side the bears argue elevated values causing staleness in liquidity and shipments of wheat out of the US. Couple that with the strongest U.S. dollar we have seen in 20 years puts pressure on commodities. 
 
Growers looking at wheat 2023 should manage profit and stay flexible in these uncertain times of inflation and geo-political unrest. We will be spending roughly 50-60% more in inputs for 2023 managing that risk is the key to success.