Upper Midwest wheat farmers generally are enjoying good yields this fall. But the favorable yields often come at the expense of protein content, and that's leading to substantial price discounts for low-protein wheat and sizeable premiums for high-protein wheat.
"The discounts (for low-protein wheat) are the biggest concern we've been hearing" from farmers, says Jim Peterson, marketing director for the North Dakota Wheat Commission.
Buyers typically want a protein level of at least 14 percent. Wheat with a 12-percent content is being hit, on average, with about a $1.50-per-bushel-discount, with 15-percent-protein wheat getting about a $2-per-bushel premium, Peterson says.
Farmers with low-protein wheat usually are better off financially to hold off selling it because the discount can narrow over time, he says.
