June 12, 2006

USDA lowers US wheat production, ending stocks forecasts
 

The US Department of Agriculture Friday (Jun 9) lowered its forecasts for US wheat production and ending stocks for the 2006/07 marketing year, moves generally expected by market analysts.

The USDA, in its monthly world supply and demand forecast, said farmers are now expected to produce 1.814 billion bushels of wheat for 2006/07, a 59-million-bushel drop from its May forecast of 1.873 billion bushels.

The 2006/07 wheat carryout forecast was lowered to 416 million bushels, 31 million less than was predicted a month ago.

The USDA said Friday that it is now expecting a smaller crop due to a "lower forecast yield of winter wheat".

The average US winter wheat yield, the USDA said, is now expected to be 40.5 bushels per acre, a 1.9-bushel decrease from a month ago. The forecast yield average for all wheat classes, according to USDA, is now 39.3 bushels per acre, down from the May prediction of 40.6 bushels.

The USDA, in its monthly crop production report, said, "The condition of the crop continued to decline during (May), mostly due to dry weather in the northern and central Great Plains."