Turmoil in Ukraine causes the wheat market to rally.
But experts agree, the spike in price will be short lived.
Ag Reporter Sarah Gustin explains.
A country filled with turmoil and unrest is driving their own markets and stocks down, while sending a U.S. wheat market in an upward direction.
(Eugene Graner / Heartland Investor Services) "At one point wheat was 35 cents higher yesterday. Approaching 7 dollars on the board. Today we are sitting about 15 cents below yesterday's highs.
But, experts agree the recent spike in the wheat market will be short lived.
(Eugene Graner / Heartland Investor Services) "The grain price that occurred at the first of the month is actually a gift to the farmers. There is plenty of wheat supplies in the world. As far as Ukraine is concerned they supply 6% of the wheat in the world. There is no stoppage of wheat movement right now in the Ukraine. This rally is more of a fear rally that things may fall apart over things in the Ukraine."
(Jim Peterson / ND Wheat Commission) "The Ukraine situation provided a short term pricing opportunity, obviously the market is set back now. Things like that where you do have a spike in the market, give you some good opportunities."
Jim Peterson with the North Dakota wheat commission expects wheat acres to increase throughout North Dakota.
Peterson expects wheat to pick up some 2013 prevent plant acres, and CRP ground that will be farmed in 2014.
He expects 2014 wheat acres to be between 7-7.5 million acres.
(Jim Peterson / ND Wheat Commission) "I think it's a year where producers need to take advantage of pricing opportunities the fundamentals are still a little bit bearish. World supplies aren't overly tight. Wheat is a little bit better that corn, but it's not like 2 years ago where producers are in the drivers seat."
(Eugene Graner / Heartland Investor Services) "The Ukrainians only had about 2 months of wheat left to sell before their crop is wrapped up. The best potential for our price range if they weren't to sell any of that is just around 7 dollars on the Minneapolis wheat board, maybe 10-15 cents about that. We've pretty much made the best of the move that we can make. You are really gambling everyday moving forward hanging on to it."
Peterson says spring wheat exports are about 10% ahead of a year ago.