Canadian Wheat Providing Competition to U.S. Wheat

Despite some major drought conditions in Canada, the wheat crop seemed to do better than expected.

USDA Outlook Board Chair Seth Meyer said that will impact U.S. wheat producers.

“One of the few changes in the U.S. balance sheet was to trim U.S. wheat exports by 25 million bushels and add that to carryout. Why? Because that bigger Canadian crop is going to provide us some additional competition.”

U.S exports now projected at less than a billion bushels, down about 7.5 percent when compared to last year.

Meyer did note that despite lower export expectations, they aren’t changing the price forecast which currently sits at $4.60 per bushel.