May 12, 2010
US wheat surplus to take an upturn
Unsold supplies of US wheat as of May 31, 2011, will be 4.9% higher than a year earlier, according to the USDA.
The surplus at the end of the next marketing year will total 997 million bushels, up from 950 million bushels, as higher beginning stocks more than offset a smaller crop, the USDA said in its report.
Total wheat production is projected at 2.043 million bushels for the crop year starting June 1, 2010, down 7.8% from 2.216 million in the current year, the USDA reported. Yields will fall to 43.4 bushels per acre from 44.4 bushels.
Wheat futures for July delivery fell 17.75 cents, or 3.5%, to US$4.9275 a bushel yesterday on the Chicago Board of Trade, the biggest drop for a most-active contract since April 19. Earlier, the grain climbed as much as 0.8%. The commodity has declined 9% this year. Wheat is the fourth-biggest US crop, valued at US$10.6 billion in 2009, behind corn, soy and hay.
