June 11, 2004

US Winter Wheat Crop Forecast Lowered To 1.53 Billion Bushels

The U.S. Department of Agriculture, in its monthly crop production report, lowered its forecast for 2004 winter wheat production Thursday to 1.53 billion bushels, 20 million bushels less than the department's May forecast.
 
In line with market expectations, the USDA said it lowered the production forecast due to poor weather in several key states.
 
"In Kansas and Nebraska yield prospects have been dampened by continued dry weather as well as extreme temperatures - both high and low," the USDA said in the June crop production report. "Soil moisture levels remain a concern in Colorado, Wyoming and South Dakota."
 
The USDA predicted winter wheat yields will average 43.6 bushels per acre, 0.6 bushels less than the department's May forecast.
 
In the USDA monthly supply and demand report, lower winter wheat production was seen as key to lower-than-expected wheat ending stocks for the 2004-05 marketing year. The USDA lowered its forecast just 4 million bushels, though, to 495 million. Traders and analysts generally expected a sharper cut to as low as 477 million.
 
The USDA's June estimate for 2003-04 ending stocks was raised by 15 million bushels to 541 million due to "lower-than-expected exports."
 

Source: USDA