“‘Prices are getting so high they just aren’t serving the physical markets,’ DTN Lead Analyst Todd Hultman said.
Also on Friday, Bloomberg writers Kim Chipman and Michael Hirtzer reported that, “Wheat prices are diverging in some local markets, with the differential between cash prices and benchmark futures on the Chicago exchange plummeting as wheat buyers balk at the highest prices since 2008.
The Bloomberg article added that, “‘Wheat futures are in ludicrous mode, there is no other way to say it,’ said Matt Campbell, a risk management consultant at StoneX.
Beyond domestic market function concerns, Emiko Terazono and Michael Pooler reported on Friday at The Financial Times Online that, “The big price increases were already curtailing the ability of grain-importing countries to purchase wheat.
He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily FarmPolicy.com News Summary from 2003-2015.