05/15/07 Commodity price forecast

You can look for higher prices for wheat, milk, corn and a many other commodities if USDA is correct in its forecast for 2007. Winter wheat production is up 24 percent, total wheat up 20 percent and that's exactly what the US needed says USDA chief economist Keith Collins. COLLINS "With a 2.2 billion bushel wheat crop we think that will enable us to expand our exports in 2007-2008. Wheat supplies around the world are going to be tight so we should have an opportunity to expand our exports." Based on May 1st conditions winter wheat yields are pegged at 81 bushels an acre in Idaho, up from 77 last year. Collins says wheat prices could average $4.65 a bushel this next marketing year, up from $4.27 in 2006 and the highest price since the mid 1990's. Its not just wheat; Collins sees higher prices across the board for most commodities. COLLINS "If we look at corn we're forecasting a 2007 crop will average $3.40 a bushel for the farm price compared to $3.10 for the 2006 crop. We're looking at strong prices for fed cattle, for hogs, for broilers, and an all time record high price for milk." Today's Idaho Ag News Bill Scott