01/02/08 WSU economist sees new higher equilibrium price for wheat

Wash Ag January 2, 2008 Washington wheat growers should continue to see strong wheat prices in the 2008-2009 marketing year. That's the outlook from Tom Marsh of the Economics Department at Washington State University. Marsh: "Especially with the white wheats in the southern hemisphere with Australia being about 30% short, we are certainly anticipating prices to stay up the next marketing year. Maybe not as high for the reds simply because the outlook for next year in terms of production looks better. But overall, I think we anticipate with the market to stay pretty strong for another year." Marsh says prices being received for wheat seem to be outstripping the costs on the input side even with energy prices going up. And longer term; Marsh: "I don't foresee in the longer term that we are going to be back to $2 to $3 wheat by any means. I think the equilibrium price is going to be up toward the four to $5 at least on the longer term." Marsh gave the wheat forecast at Washington State University's recent outlook conference. I'm Bob Hoff.