Krueger on soft white wheat
Farm and Ranch February 9, 2010 White wheat is the only major class of U.S. wheat that has exports running ahead of last year. Most of that is soft white wheat and Mike Krueger of M-K Commodities in Oregon says those exports may be going at too fast a pace. Krueger: “We’re still selling it this year faster than we can continue to on average if you look at a four week average, calibrated. We have to slow it down a little. We are still at a discount to soft red in the Gulf. That‘s shrunk. It was huge. We are still at an unusual discount to hard wheats. We are in the neighborhood of French wheat. We are usually higher than that. And in the end we can‘t sell more than we have. So price rationing to a degree I think is a real possibility. So I like white wheat versus Chicago or white wheat versus other grains. What I wonder if Chicago isn‘t going down six-bits and we go down two-bits or something like that.” According to the USDA, cumulative white wheat exports for the marketing year through January 21st were 97.3 million bushels. That compares to 75.2 million bushels at the same time last year. Today USDA is issuing updated supply and demand numbers for wheat. I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on the Northwest Ag Information Network. ?
