Despite Winter Wheat Drop USDA Forecasts Increase In Wheat Production

Wheat producers could see average wheat prices a little higher in this upcoming marketing year.  The winter wheat crop looks to be smaller for 2018, the USDA is predicting that overall wheat production will increase 5% this year.  Survives of the winter wheat crop leading to a production forecast of just under 1.2 billion bushels, down 6% from this last season, yields are down about two bushels an acres.

It’s Hard Red Wheat taking the hit, USDA forecasting a 647 million bushel crop down 14% from a year ago.  Other types of winter wheat, showing increases.  Total U.S. wheat crop for the 2018-19 season projected at 1.8 billion bushels, up 5%, but the use of that wheat projected up with record high food use expected.  Exports could be up a little bit too.  Final results a drop in year ending stocks to a four year low, prices could top this season, by 30 cents a bushel at possibly an average of $5 a bushel but the range is from $4.50 to $5.50.

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