USDA increases white wheat export estimate

Farm and Ranch February 10, 2011 There were not many changes for U.S. wheat in USDA’s supply and demand report issued Wednesday. U.S. wheat supply, use, and ending stocks were unchanged as were overall export estimates. However, USDA did increase by ten million bushels each the forecast for white wheat and hard red winter wheat exports. Hard red spring wheat exports were cut 20 million bushels. The white wheat export forecast now stands at 190 million bushels.

Mike Krueger of the Money Farm thinks USDA will have to change its export forecast down the road.

Krueger: “Going forward I think if you were to look for a number that might change I personally think that the export forecast is a little bit on the light side. You have undoubtedly been, like everyone else, been seeing the uptick in interest in wheat imports to the North African and Middle East regions.”

On the world level USDA lowered wheat ending stocks just slightly, by less than a million metric tons.

The market-year average price received by producers is now forecast by the USDA at $5.60 to $5.80, up ten cents on the lower end.

Krueger says the most significant number in yesterday’s report was for corn. USDA reduced its ending stocks estimate to 675 million bushels. USDA says that means a stocks-to-use ratio of five percent. The same as in 1995-96.

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