Spring wheat acres expected to increase in 2023

Jan 10, 2023

When it comes to supply and demand for wheat, demand has outstripped supply for the past couple of years.

Chuck Penner with LeftField Commodity Research says with the strength in demand, we've seen an increase in prices.

The price rally was accelerated by the drought and most recently by the war in Ukraine.

In terms of major exporters, he says, Canada bounced back while there was a drop from other key exporters.

"If you look at just the stocks themselves, it's the lowest since 2016/17, and if you look at it as the days of use, it's the lowest since 2014/15. Now, as you may know, China accounts for over half of those global wheat stocks. China's really not a player in terms of an exporter. The other thing is, we really don't know if those stocks exist, how large they are, or what quality they are, all of those types of things. So if you strip China's stocks out of that, the picture looks even more friendly, if you want to call it that. "

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