Buried in wheat

Farm and Ranch August 13, 2009 USDA’s August crop report showed a total U.S. wheat crop this year three percent larger than expected in July. And even though a crop of nearly 2.2 billion bushels is 18 percent smaller than in 2008, ending stocks of wheat next May are forecast to be 743 million bushels compared to 667 million this past marketing year. The increase coming in hard wheats while soft wheat supplies are forecast to decline year- to-year.

World wheat ending stocks also grew in this latest USDA report to 183 million metric tons, about 12 million tons more than this past year.

Peter Georgantones with Investment Trading Services in Bloomington, Minnesota, told a Minneapolis Grain Exchange teleconference Wednesday that we are buried in wheat.

Georgantones: “I feel like we are going down towards $4.50 in Chicago and Minneapolis I feel is going to be headed down towards $4.75 or $5.00 easily. It is the one market where it is going to be hard to make a bullish case for wheat in the next 12 months unless something changes.”

USDA lowered its season average wheat price projection a dime to $5.20 a bushel.

Compared to July the USDA actually increased its yield forecasts for spring wheat in Washington, Oregon and Idaho and upped winter wheat yields by a bushel an acre in Oregon and Washington.

I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on the Northwest Ag Information Network.

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