Record Wheat Production Worldwide

The latest World Agricultural Supply and Demand Estimates (WASDE) released by USDA, showed a mostly unchanged U.S. wheat balance sheet but record production worldwide, the National Association of Wheat Growers (NAWG) also reported. The all-wheat season-average farm price was lowered to a range of $6.55 to $7.15 per bushel, versus last month’s projection of $6.60 to $7.40 per bushel.

Global 2008/2009 wheat production is projected at a record 682.4 million tons, up 2.2 million from last month. This is projected to be achieved due to increases in the European Union and Russia despite declines in Argentina, Australia and China. In the U.S., estimated planted and harvested acreages remained unchanged from October’s estimates at 63 million acres and 55.7 million acres, respectively. U.S. seed use was lowered by two million bushels this month, reflecting early indications that 2009 winter wheat seedings will be lower than previously expected. ❖