06/20/05 USDA outlook is lower wheat prices

06/20/05 USDA outlook is lower wheat prices

Farm and Ranch June 20, 2005 U.S. wheat producers are among a few other producers who are going to probably see a lower price in the coming marketing year than they are getting in the current year. In fact USDA Outlook Board chairman Gerry Bange says almost all the numbers for wheat in the next marketing year are going to be lower. Production about one percent lower. And on the demand side; Bange: "We are looking at U.S. export picture which is about right at 950 million bushels. It is about ten percent less than 2004-2005. We are looking at an ending stocks number that is building about 17-18 percent for the 2005-2006 year. Looking at ending stocks of 619 million bushels versus a beginning stocks number of 527. And along with that of course would come a somewhat lower price." This season the national average wheat price is $3.39 a bushel. This next marketing year may be only $2.90 a bushel. U.S. corn growers may have to cope with lower prices too. Bange says this year's crop is expected to be smaller than the huge crop in 2004 but; Bange: "We are still seeing a building of stocks in the 2005-2006 year, which suggest to us that prices will come in somewhere in the range of $1.75." USDA's price projection for barley for 2005-2006 is $1.95 to $2.35 a bushel. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.
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