12/18/07 Wheat price forecast

At the midway point of the 2007-2008 marketing season USDA says the wheat price for the year is $6.40 per bushel. World Outlook Board Chairman Gerald Bange says that forecast price is two dollars a bushel higher than the same time last year. BANGE "We've seen very, very strong demand for these commodities. There's basically a demand for protein worldwide. Of course with the tightness in wheat that is one of the factors that's leading to the strong price but if you look at the US specifically we're looking now at an ending stocks forecast for 2007-08 which is down to 280 million bushels is the lowest number we've seen in 60 years. You have to go back to 1947-48." Bange USDA arrived at those numbers because of the wheat shortage worldwide. BANGE "Reduced production prospects in Argentina, Canada and EU. Basically where the year is pretty much done in some of the areas certainly in Canada and EU where we're looking numbers that are reported by them and having been somewhat lower than we thought and also in Argentina we saw a freeze situation which occurred twice in November which has reduced the production forecast there." Bange says corn prices are forecast at their highest level in a decade and with exports going strong it's likely that there will be a record corn export before the marketing year is over. Today's Idaho Ag News Bill Scott