Wheat Prices Surge on Conflict, But Input Costs Cloud Farmers' Decisions

A market analyst says there are several factors that could impact wheat planting this fall.

Jim McCormick of AgMarket.Net attributes the recent rise in wheat prices to ongoing conflict between Russia and Ukraine, which has led to a significant cut in export estimates. 'They're now attacking infrastructure. They're trying to take out commodity boats,' he says. 'That is essentially cutting the export estimates down at least 50 percent year on year.' This has driven up wheat prices, with July Kansas City wheat trading over $8.

McCormick believes that these high prices could support additional wheat acres if the weather cooperates.

However, he also warns that high input costs, particularly diesel fuel, remain a wildcard. 'That is going to be one of the main calculations that the producers are going to have to take into account as they decide what to do,' he says.