IDAHO WHEAT COMMISSION

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With Lower Wheat Prices, Will Global Demand Pick Up?

While wheat supplies seem plentiful, it should be noted that many countries will not have a bumper crop. Australia is currently harvesting a smaller crop, pegged at 24.5 mmt and Argentina's wheat crop has been reduced by drought coming in at 16.5 mmt. With wheat prices back to historically lower price levels, will additional end users step up purchases? After all, there are two global wars to contend with, and any flare up may affect commodity prices. Will end users want to get in front of that to secure supplies? Or have end users gone back to a complacent “hand to mouth” purchase mentality, and will only buy when needed?

Read more about global wheat demand here