US Wheat Farmers Face Bleak Outlook as Oversupply Weighs on Prices | Reuters

As reported by Reuters, US wheat farmers are facing a difficult economic outlook in 2024 due to a combination of factors, including a global grain glut and high production costs.

Prices for US wheat have plummeted as abundant supplies from the Black Sea and Europe have replenished global stockpiles. This, coupled with plentiful corn harvests worldwide, is putting pressure on overall grain prices.

The situation is particularly concerning for winter wheat farmers in the Great Plains, who are projected to have their best crop in years after enduring several seasons of drought.

As noted by Reuters, an analysis by Kansas State University revealed a tough reality for Kansas wheat farmers. To simply break even this year, they would need an unrealistic yield of 60 bushels per acre, along with a price of $6.26 per bushel. This is far above current market prices in the state, which range between $5 and $5.80, and even July futures prices. Adding to the concern is a prediction by the International Grains Council for a record global grain harvest next season, raising fears of a global surplus.

The International Grains Council predicts a record global grain harvest in the coming year, further amplifying concerns about a global surplus.