3-22 FB Wheat

 Drop in Wheat Exports Making Big News in Report

The biggest news in the Agriculture Department’s crop report just released is the drop in projected U.S. wheat exports and the subsequent bump in stocks, according to Dr. Bob Young, chief economist for the American Farm Bureau Federation.

“Most traders expected little change in today’s report and that’s pretty much what happened,” Young said. Here is executive director of the Idaho wheat commission Blaine Jacobson: “exports are down slightly because a number of overseas customers are hoping to hold on and use their existing stocks and kind of bridge over till the new crop comes in. Not that the export demand has gone away but these high prices are making them wait to see if they can’t make it until the new crop comes in.” Where does China fit in all of this Blaine? “Well China’s not a big importer they try and be self-sufficient, but it’s all of the others, any of the overseas customers that are paying the high prices right now are doing everything they can to try and bridge until the new crop comes in and they are hoping with the new crop prices will moderate a little bit.”