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Surging corn prices have made wheat relatively cheap as a cattle feed, since corn gains have outpaced wheat's gains after record spring rainfall. The wheat-corn cash spread has narrowed sharply and in some parts of the US has swung to a discount.
Cheaper wheat relative to corn gives feedlots a substitution option that can reduce corn demand at the margin and pressure corn premiums, while supporting wheat feed demand.
bloomberg.comMichael HirtzerJun 25, 2019Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
