U.S. Wheat Prices to Keep Climbing, USDA Says

USDA is forecasting production of all wheat for this upcoming marketing year to be up from this past season but only by 83 million bushels, at a bit over 1.7 billion. Wheat growers planted almost 47.5 million acres, but the Midwest drought has been relentless, and USDA now projects growers will only get a crop off of maybe 37 million.

"Highest wheat abandonment since 2002."

USDA outlook board chairman Mark Jekanowski, said the winter wheat crop, which accounts for most of U.S. wheat production, could end up 8% smaller than last season. And Jekanowski added supplies over this next season will be drawn down and down; wheat exports could be the smallest since 1971. But what will all of that do to prices?

"Prices are expected to remain high.  A lot of that wheat will be marketed early at very high; record high prices."

And for the entire marketing year, Jekanowski expects prices to average $10.75 a bushel,  a full $3 more than this past season.

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