USDA trims U.S. wheat export prospects

Farm and Ranch March 11, 2011 USDA has raised its estimate for U.S. wheat ending stocks this marketing year on a reduction in expected exports for hard red spring, white wheat and durum. In yesterday’s supply and demand report projected exports were lowered 25 million bushels from last month. USDA Outlook Board Chairman Jerry Bange says it’s because of better crops in the southern hemisphere.

Bange: “One of them is Argentina where we went up to 15 million tons for 2010-2011. Than is an increase of one million tons. The reason for that, despite the La Nina circumstance they had relatively good weather so it looks like they are going to have a pretty good crop.”

That’s up about 36 percent from this past year. Bange says Australian production was also increased.

Bange: “ABARE in Australia is reporting that the crop in the west was somewhat better than had previously been thought. Apparently the yields out there came out to be a little bit higher. As a result we have increased out estimate from 25 to 26 million tons for Australia. That is a high quality, milling quality wheat that comes out of that part of the country. They do export a lot off the west coast. We believe some of those exports are competing with some of the higher quality milling wheat we have here in the U.S.”

USDA raised its projection for world wheat ending stocks by 4.1 million metric tons.

With the change in white wheat exports USDA puts white wheat ending stocks this marketing year at 83 million bushels, three million more than last year’s carryover.

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

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