The new marketing year for U.S. wheat starts up here in a few days, June 1st, and USDA analysts are projecting a year in which, stocks are declining but prices aren’t increasing.
USDA Outlook Board Chariman, Mark Jekanowski, said he is looking at yet another year of declining American wheat plantings, likely the lowest wheat acreage ever. Production is declining slightly from the last season, and stocks ending next year 7% smaller than this season. But Jekanowski, said the average all-wheat price won’t change. It’s going to be stuck at $4.60 a bushel.
“Wheat prices are determined largely in global markets and globally we’re looking at an increase in production. Higher global supply relative to use is going to weigh on prices and also weigh on our own export demand.”
USDA projects that out of an expected US wheat crop of 1.9 billion bushels, the U.S. will export 950 million bushels, roughly 2% below the current marketing year.
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