Wheat Outlook: Cautious Optimism for Next Three Years

Rising incomes worldwide will underpin global demand and create opportunities for U.S. exports in grains, oilseeds and ethanol according to a new report from CoBank’s Knowledge Exchange Division. Meanwhile, global commodity surpluses, trade agreement renegotiations, and relative strength of key currencies will set the scope of growth over the next three years.

Recently, Northern Ag Network spoke with CoBanks Tanner Ehmke, manager of CoBank’s Knowledge Exchange Division, on the forecast for the wheat market in the years to come. 

“In the absence of major weather disruptions, global grain surpluses are expected to persist over the next three years. Acreage expansions and improvements to yields in competing export hubs will be headwinds for U.S. exports,” said Tanner Ehmke, manager of CoBank’s Knowledge Exchange Division. “The bright spot will be the continual growth in demand. As the global middle class grows, so will the opportunities for U.S. exports.”

Overall, U.S. grains, oilseeds and ethanol will face mounting competition in export markets, but there are specific considerations for each commodity. Click here for the full CoBank Report.

Northern Ag Network and CoBank