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Wheat Prices Steeply Increase Fears of a global shortage for grains like wheat are a boon for Kansas farmers, who could reap the benefits of a nearly $3 jump in prices since the middle of harvest. In fact, at Garden City Co-op's elevator branches across southwest Kansas, farmers already have sold 75 percent of their wheat crop -- an unusually high amount, said Ken Jameson, vice president of the cooperative's grain division. "Normally, we wouldn't be at this percentage bought up," he said. "It would be March before we'd have this percentage of the wheat crop sold." Wheat prices at Garden City were $6.35 at the close of market Thursday. Prices at many of the state's elevators in June reached a low of nearly $3.50. In Hutchinson, prices at local elevators were hovering around $6.70. Prices soared to the highest in two years after Russia announced it would ban grain exports for the rest of the year after drought and wildfires destroyed 20 percent of its wheat crop. Top that with dry weather in Europe, as well as an influx of money coming in from speculators, said Jerald Kemmerer, general manager of Dodge City Coop. He noted customers of his cooperative chain have sold 75 to 80 percent of their crop, as well, in the past 40 days. "The tip in the market has brought the sellers out, which has been a good deal for co-ops if we can get transportation to move out (wheat) for fall harvest," he said, adding that there is a demand for railcars. His elevator took in about 9 million bushels of wheat in June. Hey, we'll plant more The steep spikes in the wheat market are changing farmer attitudes, said Dave Studebaker, general manager of the Delphos Co-op Association. "Three weeks ago, we had farmers telling us they're going to cut back on wheat," he said. "Today, we've got farmers telling us they're going to plant more." Thursday's market closed up 54 cents a bushel for wheat, which pushed Delphos Co-op's cash price to $6.32 a bushel. At harvest in June and early July, the low price dipped to $3.44 a bushel. At the Cargill Ag Horizons grain terminal just west of Salina, the price jumped Thursday to $6.50 Thursday, up 431/2 cents a bushel. While the soaring price has created "a lot of interest" among farmers in the Delphos area, Studebaker said not many can take advantage. "Most of the wheat is sold. That's the sad news," he said. Many sold their wheat from $3.90 to $4.10 a bushel. "A lot of wheat got bought at harvest time at lower prices," Studebaker said. Looking to cash in What's good about these market changes is an expectation that a better export market will develop this fall, he said, and a number of grain speculators are looking to cash in. "They're taking money out of Wall Street ... and putting it into better investments," Studebaker said. Looking ahead for farmers, he said there are forward-contracting opportunities. "They can lock in some higher prices next year, on a least a portion of what they're gonna raise," Studebaker said. He predicts the market could influence another 10 to 15 percent increase in wheat acres planted this fall, especially on fields currently planted to soybeans.

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