08/13/07 Wheat supplies tighten further

Farm and Ranch August 13, 2007 USDA's August crop production report and supply and demand numbers for wheat issued Friday did not contain any surprises. That's how Al Kluis of Northland Commodities in Minneapolis read the reports which showed total U.S. wheat production down one percent from last month's estimate but up 17 percent from last year. Kluis: "The total wheat production 2.11 billion bushels. Spring wheat up two million bushels from last month at 500 million bushels. Ending stocks coming in very close to what the trade had thought." U.S. 2007/2008 wheat ending stocks are now projected at only 404 million bushels, down from 456 million this past marketing year. White wheat ending stocks are expected to increase by about two million bushels from the previous year to 46 million bushels. USDA also reduced its forecast for world wheat ending stocks this month to 114.8 million metric tons, nearly ten million tons less in carryover than for 2006/2007. The bottom line from the USDA was that it boosted its projected season average price for wheat 30 cents on each of the range from a month ago, now ranging from $5.10 to $5.70 a bushel. Yield estimate changes compared to a month ago were made for Idaho winter wheat, down to 76 bushels an acre and spring wheat in Idaho reduced to 66 bushels. In Oregon spring wheat yields were increased from July to 50 bushels an acre. The first surveyed estimate of the U.S. corn crop pegs production at a record 13.1 billion bushels. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.