AUDIO: Scott Custard – Moving Parts LLC
The vice president of Nebraska-based Moving Parts, LLC says several factors have led to an overall positive price outlook in the wheat market.
Scott Custard says global conflicts are a primary driver.
“We’ve got a lot of war premium.” He says, “The world market is concerned that we won’t be able to get Black Sea bushels to market. I think our fundamentals probably don’t quite support $7.00 – $7.50 wheat.”
He tells Brownfield the fact that U.S. farmers planted the lowest total acres of wheat in the last 149 years is also supporting prices.
“We don’t have a great crop this year.” He says, “Our total crop is going to be down about 20% from where we were a year ago. It probably is going to be helped a little bit by our spring wheat and our white wheat.”
Custard says drought in the U.S. plains and Europe is also a factor.
“With the bump we’ve seen in the board and board prices, we’ll probably see a bump in acres this coming fall,” he says.
He says the USDA’s Small Grains Summary, due out on September 30th, could also have a price impact as it’ll give the market a clearer picture of this year’s wheat production.
