Recovery in world wheat production

Farm and Ranch August 23, 2011 If you look at the USDA forecast for wheat output in all of the big wheat producing countries and put those all together;

Bange: “You see a tremendous recovery in world wheat production.”

In fact Agriculture Department Outlook Board Chairman Gerry Bange says this year’s world wheat production will be close to a record 672 million tons, about 24 million tons more than last year.

Bange: “Its paramount to adding another Canada or another Australia to the world in terms of production. So we are seeing a very strong increase in wheat production this year, which is good I think.”

Good news in that it takes pressure off the tight corn market. But;

Bange: “Of course the bad news from the standpoint of the U.S. is that it does offer somewhat more competition in the markets we would eventually sell into.”

And indeed Bange says U.S. wheat exports this next season could drop by almost 15 percent. Part of that because production is going to be down six percent. Nonetheless U.S. wheat stocks are going to fall 22 percent during the year sending projected U.S. average prices to $7.60 a bushel , breaking this season’s record by almost $2.

USDA is also forecasting a record average corn price of $6.70 a bushel which would beat this year’s record by $1.45 a bushel.

I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net.

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