Lots of Wheat but Not Enough Protein!

[SASKFARMER3]

Its the time of BS by grain companies to start the process to get your grain as cheap as possible so they can make out like bandits. Don't I repeat Don't let them tell you if you have high protein wheat that there is no market for it. The world is a wash in wheat, shit cheap useless feed wheat and needs protein wheat. The premium should be real nice.


A global glut of wheat isn’t producing many bargains for U.S. flour millers who need high-protein grain used in bagels, pizza crust and specialty breads. Tightening supplies mean buyers are paying premiums that have tripled in six months, reports Bloomberg.
American farmers produce two main types of wheat, and stockpiles of the winter variety surged over the past two months with the best harvest yields of all time from top grower Kansas. But getting more kernels and starch per plant used up nutrients and left less-than-normal amounts of protein -- the compound that determines how sticky and stretchy dough becomes.
That’s boosting the appeal of the smaller spring-wheat crop that growers are preparing to collect in northern parts of the Great Plains, including top producer North Dakota. Because the grain normally has a higher protein content, its premium over winter wheat has ballooned even as record global output of all varieties are set to exceed demand for a fourth straight year and benchmark prices in Chicago are the lowest since 2006.

Protein is the name of the game in 2016 and were starting to fill this week and 28 to 30 should help just hope we all miss hail events.

[farmaholic]

Taking into account the volume potential of this year's wheat crop, I dont know if an average, or even above average, nitrogen application at seeding time this year will be enough to boost protien levels to above average values.

Lots of heads and lots of moisture may mean not enough N to go around. There might be lots of small piebald kernels from the tillers.

Then there is the fusarium question.....will high protien wheat with fusarium still get a premium......I think we already know the answer to that question.

[sk_wheatking]

Ag is a joke. Your going to pay 700 a bushel to seed canola and sell it for 9.50 never mind the rest of the costs involved and also the enormous risk.it will never change. The same goes for every other grain we grow. It's no different than the price of gas. Is it coincidence that it's the same price per liter at every service station? The prices of gas goes up at every station the same amount the same time.farmers have to take what the companies decide they want to five them. Could you imagine if we could say not sell any canola to these crush plants, wait them out until they have to start doing shut down at their plants? What would canola be worth then if we has that kind of power. The financial position that 95% of guys are in though puts that idea out. It's the position of being forced to sell to pay huge input bills is why grain companies laugh all the way to the bank.

[jake550]

Seems like the prices are getting so low we won't have a choice but to hold grain till it recovers.
Simply can't and won't sell good quality milling wheat for less than $6.75 a bushel. And it's a long ways below that now.
And now canola is down in that dismal category too.
Be a good time to have lots of bins to hold grain as long as it takes.
I know it'll never happen but man would it be nice if farmers could cooperate and actually "lock the bins" and force grain buyers to pay more....

[jake550]

Ag is a joke. Your going to pay 700 a bushel to seed canola and sell it for 9.50 never mind the rest of the costs involved and also the enormous risk.it will never change. The same goes for every other grain we grow. It's no different than the price of gas. Is it coincidence that it's the same price per liter at every service station? The prices of gas goes up at every station the same amount the same time.farmers have to take what the companies decide they want to five them. Could you imagine if we could say not sell any canola to these crush plants, wait them out until they have to start doing shut down at their plants? What would canola be worth then if we has that kind of power. The financial position that 95% of guys are in though puts that idea out. It's the position of being forced to sell to pay huge input bills is why grain companies laugh all the way to the bank.

I believe 95% of farmers are in better financial shape than you implied.

[fjlip]

I believe 95% of farmers are in better financial shape than you implied.

I do not, BIG debt on young farmers, CRAZY high risk...isn't this fun

[furrowtickler]

Will be interesting to see if our protein held at 14 ish with the nitrogen aplication at heading with fungicide .
Last year we gained an ave 1.3 pts

[sk_wheatking]

I believe 95% of farmers are in better financial shape than you implied.

Ok thanks for straightening me out on that issue. Just tell me why the giant grain dump at harvest and just before input deadline dates. If guys have the cash to hold on then do it.

Maybe I'm out of touch with reality. Maybe there is very little debt out there after all.

[malleefarmer]

blending sask3 blending id say Australia and Canada were both the worlds premium wheat producers in 70s 80 90 but since 2000 market has changed due to influx of massive Russian black sea Ukraine wheat.
That's what buyers use mostly and blend with a little canack and aussie to get it up to specs.

Sad reality its never gonna change.

Here down under we aim for bog standard 9.5 to 11% protiien with max yield as most of our high protein wheats are substasially lower yielding

[farmaholic]

You mean we will never be paid a decent premium for our "Artisan" CWRS wheat grown in Canada......pity!

[MBgrower]

Kazach wheat is pretty good, and cheap.

[biglentil]

Kazach wheat is pretty good, and cheap.

The only high price premium you'll see is at the fuel pump. Garbage same price as gold sad but true.

[jake550]

Ok thanks for straightening me out on that issue. Just tell me why the giant grain dump at harvest and just before input deadline dates. If guys have the cash to hold on then do it.

Maybe I'm out of touch with reality. Maybe there is very little debt out there after all.

I never said there's very little debt. I said I believe most farmers especially grain farmers are in quite good financial shape. I don't think there's anything wrong with some manageable debt. In fact it's a great time to borrow with such low interest rates. I wish we had these rates back when I was full of energy and younger.

Also I think lot of grain goes to town in the fall because most of it is priced and guys need bin space. Also it's very nice to move that grain that's less than ideal to store safely as soon as possible.

[Hopalong]

Takes me back in time to standing next to another farmer in front of elevator price board when he turned to me and said"you know, if we just banded together, we could do something". I said that it had been tried and he said "I know, I know, I am just dreaming".

[hobbyfrmr]

Noody is scared to plant canola on canola stubble around here. There is an exceptional amount of wealth on farms doing this. They are doing it more than ever on more acres than ever. Everything purchased new and in multiples. Its pretty awesome.