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Looming Canadian rail strike might boost U.S. wheat, feed grain demand

An ag economist is eyeing a potential spark in the U.S. wheat market.

The University of Missouri’s Ben Brown said a pending Canadian rail strike could boost demand for U.S. wheat and feed grains.

“The impact that that could have in supplying wheat to the market, maybe some of that business then comes to the United States,” he said.

Brown said worsening wheat conditions in the Black Sea region, France and Argentina have opened the door for more U.S. demand. But he tells Brownfield an expected 11 percent increase in Canadian wheat production is largely offsetting those losses.

“Canada wheat has, basically, filled that void that we thought, maybe, the United States could help pick up,” Brown said.

A Canadian rail labor strike announcement is expected August 9th. Brown made his comments on Brownfield’s recent Weekly Commodity Market Update.