March 12, 2009
US raises forecast for 2008-09 wheat ending stocks
Domestic wheat ending stocks for the 2008-09 marketing year will be higher than expected, thanks to weak exports and domestic consumption, the USDA said Wednesday (Mar 11) in its monthly World Agricultural Supply and Demand Estimates report.
The USDA is now predicting that US wheat ending stocks will total 712 million bushels, up from a February forecast of 655 million bushels.
"Exports are projected 20 million bushels lower as increased exports by major foreign competitors limit opportunities for US wheat," the USDA said.
The new forecast for US wheat exports is 980 million bushels, a drop from last month's prediction of 1 billion bushels, according to the report.
And US mills are using less wheat to make the flour they produce, the USDA said.
"Food use is projected 25 million bushels lower based on the latest mill grind data from the US Bureau of Census," the USDA said. "High extraction rates" for the 2008 wheat crop "have reduced the amount of grain needed to produce flour and lower per capita consumption is reducing demand for flour."
