USDA Expects Higher Wheat Prices For The Remainder Of The Year

Wheat growers can expect “a lot of support for wheat prices” for the remainder of the marketing year, that according to Agriculture Department Chief Economist Justin Benevidez.

However, he acknowledged part of that support is coming from lower domestic production due to extended drought conditions this growing season, particularly in the hard red winter wheat belt.

“Very, very low wheat production, and that on its own is keeping wheat price high domestically,” Benevidez said.  In addition, lower exports are forecasted globally, primarily from Black Sea region.

“We're seeing the lowest expected export totals that we've seen in about five years,” he added.  Benevidez said USDA's September season ending average price for wheat is $6.40 a bushel, up $1.34 from the previous marketing year.

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