Even though American wheat growers will likely see a 4 % year over year drop in the crop size, those growers are still likely to see a cut in average prices because they’re driven heavily by international supplies. USDA’s Outlook Board Chairman, Mark Jekanowski, said that the world wheat supplies are likely to be about 2% larger this year than last. This, he noted, is a smaller rate a growth that had been projected a month ago.
“But certainly the market has been under some pressure for some time just because the larger supplies coming out of Russia and Ukraine have been weighing on prices a bit. Even with the cut in production that we made this month at the global level, supplies are still very abundant.”
And so USDA has cut it’s all wheat forecast originally the average price was expected to be $4.60 a bushel which would have been two cents higher than this past marketing year. But the new projected wheat price is $4.50 is eight cents less than this last year.
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