Wheat Production Falling Pushing Prices Up

Wheat acreage has declined most years since the 1980s, but winter wheat acreage for 2017 is quite notable.

USDA Analyst Rachel Trego noted, “This year’s winter wheat planted area is now the lowest in 108 years.”

Trego says forecast planted area is down about eight percent compared to last year at 39 million acres.

In contrast, there were 61 million acres in 1986.

Trego said yields will drop to about 47 million acres in 2017.

“Wheat production is projected down 20 percent. Stocks are forecast to decline for the first time since 2013-14. USDA anticipates somewhat higher producer prices.”

The average all-wheat price is forecast to be $4.30 per bushel, a 45 cent bump from 2016.