The market fundamentals for spring wheat are bullish, says an analyst.
“I think you’re probably going to be looking at better pricing opportunities here in the future,” said MarketsFarm analyst Bruce Burnett.
Strong demand combined with supply problems in key export markets would suggest the crop is undervalued.
Minneapolis spring wheat December futures have tumbled by more than US$2 per bushel between mid-summer and early fall. That doesn’t make much sense to him.
“Are the current futures undervalued? Yes, I think they are,” said Burnett.
Mercantile Consulting Venture said in a recent article written for the Saskatchewan Development Commission that one key market is seeing a shortage of high protein spring wheat.
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