


“In the drier areas of the Panhandle, if they plant later, it improves the yield potential for grain,” Welch said. “That may bode well for yield, but negatively impact the stocker cattle folks.”


“From a yield standpoint, it's not hurt yet, but there is concern if it doesn't rain and the root system doesn't develop.”


“Most of the wheat in many food products is highly processed and goes through baking and milling,” Welch said. “Even though the wheat component is important, it's small in terms of adding to the cost of the product.”

About 73 loaves of bread can be made from a bushel of wheat. At $8 per bushel, the value of wheat in a one-pound loaf of bread is about 11 cents, or about 7 percent of the cost of the loaf. The remainder of the cost is tied up in processing, baking, packaging, transporting and advertising, he said.


“Much of the market driven by panic buying is gone,” said Welch. “Wheat from the southern hemisphere (Australia and Argentina) is being harvested and is available for export and the Russians are aggressively selling wheat as well.”

In addition:



  • While rising grain prices contribute to higher food costs, the impact of the price of wheat on consumer budgets is small since most products containing wheat are highly processed. That means processing costs may contribute more to the price of the product than the price of wheat.
