11/12/07 Wheat ending stocks projection turns higher

Farm and Ranch November 12, 2007 After months of a tightening world wheat situation the USDA's November Supply & Demand Report forecast an increase in both U.S. and world wheat ending stocks compared to the previous month. U.S. carryover stocks next May were projected at 312 million bushels, up from 307 million. Peter Georgantones of Investment Trading Services in Bloomington, Minnesota is skeptical of that number and called it a slap in the face. Georgantones: "Most analyst groups are thinking we are in the 250 to 275 area and the USDA is obviously not going to go below 300, at least right now. They may do that eventually when it doesn't matter and we are coming into next year's crop." USDA raised world wheat ending stocks to 109.8 million, which is still the lowest in 30 years. The drought reduced Australian wheat crop was pegged at 13 million metric tons which Georgantones says is reasonable. Australian exports at nine million tons would be the same as this past year. Georgantones is pretty sure the old crop wheat high is in. Georgantones; "New crop wheat is a different animal because we have dry areas in Colorado, western Kansas and western Oklahoma and western Texas that produce a very large amount of the wheat. I have a lot of customers down there who tell me they could really use a drink and it is very, very dry." The USDA's November report pegged the U.S. corn crop at 13.2 billion bushels, down one percent from last month but 25 percent above 2006 with average yield of 153 bushels an acre. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.