Wheat prices drilled into new lows this week, with prices for Chicago and Kansas City wheat futures nearing $4.00 per bushel. The market lost ground as foreign competitors, like Russia and Australia, undercut American wheat sales.
Adding to Midwestern farmers’ concerns are weather forecasts for a dry and cold winter in many wheat-growing areas. If the dormant wheat crop is damaged over the winter, it could cut into the spring harvest. While this would be detrimental to affected farmers, these threats could provide a much-needed spark to boost wheat prices as well.
By the end of the week, grain prices rebounded, with corn, wheat, and soybeans closing strong on Friday afternoon.