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| In the 1995-96 crop year, wheat almost reached $7 futures rationing to a 376 mil. carryout, except we were also dealing with tighter feed grain inventories. In the June-Aug. quarter of this year, total feed grain usage declined by nearly 2.9% the prevailing theories being the "unusual" disappearance of 100+ mil bushels of wheat was fed and a declining ethanol grind. IF, the supply-demand data to be released after the crop report does raise the corn feed & residual disappearance confirming higher feed demand it should prove beneficial for feed grains but the question remains did $9+ futures, the result of international panic, perform the rationing job? Every year is different...there is always something...personally, I don't think we have yet completed the job...(however, I have been dragged thru the bramble patch before & my opinon means zip) in wild bull markets it is typical to endure extremely sharp price declines & yet maintain the bull market profile. Check out the 1973-1975 period of prices. | |
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world wheat situation
