06/12/08 USDA boosts wheat price forecast

Farm and Ranch June 12, 2008 The national average wheat price for the marketing year that just ended in May was $6.50 a bushel. In its June supply and demand report issued this week the USDA forecast a 2008/2009 national average wheat price of from 6-75 to 8-25, up fifteen cents on each end of the range from the May forecast. USDA says wheat prices are expected to be supported by early season demand and higher corn prices. Price is one thing, profit another and USDA economist Larry Salathe puts higher prices in perspective. Salathe: "The prices are up but of course costs of production are higher. Farmers are paying more for their fertilizer. Paying more for diesel fuel. That is being offset somewhat with higher prices and I think the bottom lines are about neutral at the present time." The higher price forecast comes even as USDA sees a larger world wheat crop and increasing global wheat stocks. In its crop production report USDA forecast U.S. winter wheat production at 1.82 billion bushels, up two percent from the May forecast and 20 percent above 2007. Hard red production was up two percent from May, soft red up four percent and white winter up slightly. Projected winter wheat yields for Washington and Oregon were unchanged from last month at 63 and 60 bushels an acre while Idaho's yield is now forecast at 73 bushels an acre, up a bushel from May. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.