Demand and Prices High for Wheat Futures
The world needs wheat, especially in with Russia's invasion of Ukraine ongoing. But, it looks like global production is going in the wrong direction, and will fall below expectations in the year ahead.
Outlook Board Chairman Mark Jekanowski said global production will come in at a bit more than 771.5 million tons. If realized, that would be almost 7.5 million less than last year; almost two million tons less than USDA's June forecast.
"Driven mostly by Ukraine and also the EU, where they've also been suffering with some drought over the past several months and that's impacting the yield potential there."
But for the U.S., USDA projecting overall wheat production to be up 8% this year, with an expected 52% bigger spring wheat crop. That Jekanowski noted will help offset a 6% smaller Winter wheat harvest. When it comes to prices; USDA has sliced 25 cents off at season average price Forecast, now standing at 10 and a 1/2 a bushel.
"Sill pretty strong prices," he noted. Stronger than this past season by $2.87, or 38%.
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