May 19, 2012

Higher US grain crop pulls down prices, boosts wheat exports

With the forecast of surging grain output in the US this season, the prices of grain have plunged and wheat exports increased.

A recovery in US durum and other spring wheat has raised the US wheat forecast by 12%, which, with a huge corn crop, has led to a 16% projected drop in the all-wheat season average price.

USDA World Ag Outlook board chairman Gerald Bange says that will make US wheat more competitive.

"We do expect to see exports be a little bit stronger."

They're forecast to rise 12% or 3.4 million tonnes, also helped by earlier US planting, harvests, and bigger grain yields.