Wheat. A mainstay of crop rotations globally and a huge part of the Canadian export market, wheat has not had a great run the last few weeks.
To unpack all that’s going on with this market, we go to Brian Voth, founder of Intellifarm Inc., based at Manitoba.
First, Voth says we need to check our lofty expectations. “When you’ve had a couple of years of just super abnormally high values, anything coming off of that is going to feel like you’re getting kicked when you’re down,” he says.
Plus, high prices are meant to drive production and discourage demand, encouraging buyers to look at alternative products so that the balance sheet can be rebuilt. “Task completed” is really what these markets are telling us, Voth says.
Ever-rising markets make for easy marketing decisions, as it seemed for some time that you couldn’t really go wrong with holding or selling — both were profitable. But now, farmers will need check their expectations and get back to more sales discipline for the year(s) ahead, Voth says.
For a full discussion on where the funds are at, how global balance sheets have shifted, and what to watch in the next three months, listen below or hit that podcast link to download and listen later.
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