Corn Crops Switch with Wheat as Prices Soar
The U.S. corn crop is in trouble from the sweltering heat wave, but the enormity of the problems will peak after the U.S. Department of Agriculture (USDA) pieces together the first crop supply and demand reports of the year. The reports will include field surveys instead of just an analysis of trends. Historical price patterns have reversed, with the price of corn higher than wheat. The abnormality is upending commodities trading strategies and changing what poultry producers feed their chickens, not to mention how the corn-based food producers are coping.
The change is in response to soaring prices of corn relative to wheat, which usually costs much more than corn.
Early signs from USDA are close to dismal, which doesn’t help corn prices, boosting them to more than $7 a bushel, a shift that might have a domino effect among farmers, food producers and retailers.