The Winter wheat harvest across Texas is down this season, a result of the drought, late Spring freezes and insects. Fred Dwyer, a wheat farmer just North of Wichita Falls called the yield so far, "terrible".
According to the USDA weekly crop report out on Monday, Texas farmers are reporting nearly 80% of the Winter wheat as "very poor" or "poor". Dwyer said, "We're in a darn drought. In my opinion, if we miss the moisture through June I believe the whole city of Wichita Falls is in trouble."
Newschannel 6 also spoke with a commodities broker and other professionals who deal with grains on a daily basis. One expert told us they weren't expecting good yields in Texas as the drought continues to impact crops. Whether the low yields could have an impact on the overall market, remains to be seen.
Another expert told us, "wheat doesn't live in a vacuum," meaning its place in the market is influenced by other grains like corn and soy beans. Heavy rains in some parts of the country have already delayed some of those crops from being planted by several weeks.
No matter which way the market goes, Dwyer says Texas farmers will feel the hit. He said, "We're going to take a whopping on this thing but I will say this, I think today the cash markets around $7.50 and boy we've sure sold a whole bunch of it a lot cheaper than that."
The cash market according to the USDA was actually at just under $9.00 on Monday, meaning the hit could be even greater. Still Dwyer says he's been through this before, and he'll find a way to make due. He said, "It's just a rough old year and hopefully we don't have many more of them."