International Issues Pushing Wheat Prices Higher
American wheat growers continue to see prices above last season, but will that continue much longer? USDA's Outlook Board Chairman, Mark Jekanowski, said one source of higher prices is lower projected wheat stock.
"Stocks are getting, you know, for wheat, relatively tight. There's a six year low and that's been supporting prices. Future prices have been very strong over the past couple of months."
Development overseas has also provided a little price support for U.S. growers. Argentina is currently harvesting and the USDA is cutting that forecast by one million tons.
"Mainly because of some dry conditions that they've been experiencing over the summer into the fall is that crop is now just starting to be harvested."
World stocks of wheat are still expected to be record large but not as large as had been expected. And U.S. stocks look to be the secure low. With half the U.S. crop marketed already a protected average all-wheat price $4.70 a bushel, 12 cents higher than this past season.
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