September 10, 2007

US August wheat prices at all-time high

The national average price received by farmers for all wheat in August reached a record high of US$5.85 per bushel, eclipsing the highest mark of US$5.75 in May 1996.

The price was up 68 cents from US$5.17 in July and US$1.94 above the August 2006 average of US$3.91, the

US Department of Agriculture (USDA) said in its August Agricultural Prices report.

Record-high prices also were set in August for winter wheat, durum and spring wheat other than durum.

The average price for durum was US$6.96 per bushel, up 41¢ from $6.55 in July, which was the previous record high, and $2.87 above the August 2006 average of $4.09.

The national average price received for winter wheat in August also was US$5.85 per bushel, up 71 cents from US$5.14 in July, US$2.08 above the US$3.77 average for August 2006 and passing the previous record high price of US$5.74 in May 1996.

The price for spring wheat other than durum, at US$5.73 per bushel, was up 29 cents from US$5.44 in July, and US$1.62 above the US$4.11 average a year ago. The August price exceeded the previous record high of US$5.68 set in May 1996, but monthly USDA data only went back to January 1977 for spring wheat other than durum.

The August index for feed grains was 150, down 3 percent from the revised level of 154 in July but 40 percent above the August 2006 index of 107. The average price received by farmers for corn in August was US$3.17 per bushel, down 15 cents from US$3.32 in July but up US$1.08 from US$2.09 in August 2006. Farmers received an average of US$5.89 per hundredweight (cwt) for grain sorghum in August, up 37 cents from July and up US$1.54 from a year ago. The average price paid for oats in August was US$2.25, down 8 cents from July but up 58 cents from August 2006.

The USDA index of August prices received for oil-bearing crops was 134, down 1.5 percent from a revised 136 in July but up 43 percent from 94 in August 2006. The national average price paid to farmers for soybeans was US$7.49 per bushel, down 7 cents from July but US$2.26 above US$5.23 in August 2006. Farmers were paid an average of US$8.40 per bushel for flaxseed, up 26 cents from July and up US$2.90 from a year ago. The average price paid for sunflowerseed was US$18.40 per cwt, unchanged from July and up US$6 from August 2006. The average price paid for canola was US$15.10 per cwt, up 60 cents from July, which was the first month the USDA included a price for canola.

The preliminary August index for all crops was 139, down 1 percent from the revised July index of 141 but up 11 percent from the August 2006 index of 125.