December 13, 2004

USDA Raises 2004-05 US Wheat Export Forecast; Lowers End Stocks

In a widely expected move, the U.S. Department of Agriculture on Friday raised its 2004-05 forecast for U.S. wheat exports and lowered its ending stocks estimate.

Due mainly to "stronger than expected sales to date" and weak competition from the European Union, the USDA raised its prediction for U.S. wheat exports to an even 1 billion bushels, up 25 million bushels from the department's November forecast.

The USDA said the export forecasts for hard red winter, hard red spring and white wheat were each raised by 10 million bushels, but the export forecast for soft red winter wheat was lowered by 5 million bushels.

The USDA, in its monthly supply and demand report, also lowered U.S. wheat ending stocks forecast to 553 million bushels, a 15-million-bushel drop from USDA's November prediction.