Wheat export competition

Farm and Ranch April 15, 2010 Over the past two seasons in the world’s wheat growing areas;

Bange: “We have essentially had good weather everywhere.”

That’s Agriculture Department Outlook Board Chairman Jerry Bange. Last year there was a record world wheat crop of 683 million metric tons. This year’s forecast a tad less, but still big at 678.

Bange: “So we are right on the heels of a record production again. We have very large production worldwide. Whereas the U.S. production is down 11% foreign production is up about a half a percent. So we do in fact have strong competition. Of course that is being reflected in our exports.”

The latest forecast for U.S. wheat exports is only 865 million bushels. Due some recent sales that is five percent more than had been expected;

Bange: “But it is still relatively low by historical standards and it is down about 15% from last year.”

In its April Wheat Outlook USDA says competition from Russia, Ukraine and Kazakhstan in particular have limited U.S. export opportunities.

The USDA says the year-to-year percentage increase in projected all-wheat ending stocks is 45 percent. By class hard red winter wheat stocks are forecast to be up 57 percent; hard red spring up 76 percent and soft red winter ending stocks up 24 percent. White wheat stocks however, are forecast to drop by 19 percent.

USDA’s projected marketing-year average farm price is $4.85 to $4.95 a bushel.

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

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