US wheat output seen at 1.945 billion bushels

The US 2010-11 wheat production is seen at 1.945 billion bushels, with planted area estimated at 53.8 million acres, according to the USDA.

 

That represents a 12% drop in production and a 9% drop in acreage from last year.

 

Wheat yield is seen around 42.6 bushels per acre, down from 44.4 bushels last year, the USDA said in a grains and oilseeds outlook released Friday (Feb 19) at its annual Agricultural Outlook Forum.

 

Production decreases are expected for all classes of wheat except for white wheat, USDA economists said in the report.

 

Regarding demand, the government said exports are seen at 850 million bushels.

More wheat will be going into food and feed this year, the USDA also said. Domestic use of wheat is expected to increase by 64 million bushels, putting total domestic use at 1.246 billion bushels in the 2010-11 marketing year.

 

"Lower expected production and higher use more than offset the large increase in beginning stocks to reduce ending stocks 4% in the 2010-11 marketing year," USDA economists said in the report.

 

Ending stocks, or the amount remaining after supply and demand factors have been accounted for, are estimated at 940 million bushels.

 

In its February 11 baseline report, the USDA estimated 2010-11 planted area at 55 million acres. Production for 2010-11 was estimated at two billion bushels, with yields seen at 42.7 bushels per acre.

 

The baseline report forecast exports at 875 million bushels, with ending stocks at 874 million.

 

The annual baseline report, which was compiled in November 2009, contains agricultural projections for a 10-year span and is used to prepare the president's budget.

 

In 2009-10, US wheat planted area was 59.1 million acres, according to the USDA's February supply and demand report. Production in that marketing year was 2.216 billion bushels. Wheat exports were 825 million bushels, and ending stocks were 981 million bushels.