May 15, 2007

US wheat production seen to increase by 20 percent

Wheat production in the United States is forecast to reach a 20 percent jump as most livestock producers shift to wheat as a feed source due to high corn prices amid increasing demand for ethanol.

The US Agriculture Department (USDA) sees a 35 percent hike in US wheat use for feed in the 2007/08 marketing year also due to good weather and strong export demand on tight exportable supplies in Australia and other countries.

The increase will put prices of US wheat to US$4.65 a bushel from US$4.27 in the marketing year which ended last month.