USDA Reports More Wheat Than Expected

USDA forecasts for increased wheat yield and production play a role in both larger ending stock numbers and a lower season ending average price estimate.

“Really our only change was to incorporate the information we got September 30th from the small grains report," noted World Agricultural Outlook Board Chair Mark Jekanowski.  "That showed a 58 million bushel increase in the U.S. wheat crop.  So, that's incorporated into our domestic balance sheet.  Basically, that increase in production just falls right into ending stocks. We did reduce our season average price forecast.  We lowered it at 10 cents a bushel. So now it's at $5 per bushel. That would be down 52 cents per bushel year over year.” 

Jekanowski added the U.S. is among several global wheat-producing nations reporting year-over-year production increases.  The result?

"We raised our global wheat production forecast this month by 12.7 million metric tons," Jekanowski said.  "Brings the total up to 828.9 million metric tons by far a record.”

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