July 30, 2010 Just Too Much Wheat In The World?
I found the discussion at the wheat producers meeting in Burkburnett this morning interesting for two reasons. First, there was unanimous agreement that the speculators are the reason for the recent price run-up as there are no fundamentals to support the movement. And second that even though we all see a growing world supply of wheat and a downward trend in world-wide usage, nobody wants to grow less wheat. The consensus was we need a better type of crop insurance based on revenues rather than bushels.
It seems to me that a better strategy would be to figure out how much less higher protein wheat we need to grow to stabilize the price at a profitable level, not ask the government to guarantee a set revenue.