January 2, 2007

Good prices boost wheat production

The USDA's November report showed wheat prices were up 3 cents per bushel on average over October and US$ 1.17 per bushel over November 2005 prices.

Canada and Argentina have increased wheat production by one million tonnes each, boosting competition during the later half of 2006-07, the report said.

Overall US exports were down due to "increased competing supplies and the slow pace of sales", according to the agency report. It estimated the nation's exports for 2006/07 to be down by 25 million bushels.

California Wheat Commission Executive Director Bonnie Fernandez said the drop in exports resulted in part from a tough harvest this year, especially in the Midwest, where drought conditions damaged wheat crops.

The report on how many acres have been planted for the coming season would however, be out only sometime in mid January, Fernandez said.