Wheat Corn Price Spread

The wheat (SRW) corn price spread has moved to the upper level of historical experience ignoring the spike that occurred in the  2007/2008 crop year. The drop in corn used as fuel stocks and the prospect of a burdensome new crop corn supply has widened the wheat – corn price spread.

Barring a major weather event this summer wheat will likely maintain a $2.00 plus premium to corn through the fall row crop harvest. In 2007/2008 the US effectively ran out of wheat which probably won’t be the case during the 2020/2021 season. But wheat supplies will be less burdensome than corn stocks, again barring a major Corn Belt drought this summer.