Surging Corn Prices Put U.S. Wheat Back in the Feed Trough
- Cash wheat is cheaper than corn in some parts of the country
- Increase in feed use could further erode wheat stockpiles
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A looming shortfall in U.S. corn production after a historical spat of wet weather means wheat is back on the menu at cattle feedlots in the southern Plains.
Surging prices for corn, the gold standard in fattening cattle, are making wheat that’s usually reserved for human food into a relative bargain for feeding livestock. Prices for both crops surged after record rainfall this spring saturated American fields. But corn’s gains have outpaced those of wheat, shrinking the latter’s traditional premium. In some parts of the U.S., the cash spread has even swung to a discount.