Wheat Slices Lower

Chicago wheat prices collapsed below $3.85 per bushel this week, the lowest level in almost a decade. Prices are falling after a bountiful U.S. wheat harvest adds to a record-high global grain stockpile.

For many farmers, the value of their wheat is far lower than the price traded in the Chicago futures markets. Due to oversupply in local markets, some farmers are being paid under $3.00 per bushel for wheat, a ruinous price for those farmers who didn’t lock in higher prices earlier this year.