03/13/06 Few changes for wheat in USDA report

03/13/06 Few changes for wheat in USDA report

Farm and Ranch March 13, 2006 Domestic supply and use of wheat estimates were left unchanged from the previous month in USDA's March report issued Friday. World wheat ending stocks were increased slightly from a month ago but are still forecast to be seven million tons less than the previous year at 142.6 million tons. Jim Bower, president of Bower Trading in Lafayette, Indiana, says what the wheat market is focused on is the weather for the Plains. And Bower says if meaningful rain doesn't fall soon wheat prices could go higher than a lot of people think. Bower: "There are areas out there that are still in need of significant rain. Recognize that we did get some precip into the eastern 25 to 30% of that hard red wheat area, but there is a vast area that still needs rain. So I can't stress enough that if we don't get rain into the western and southern Plains over the next six weeks I think wheat is easily a $5 item and possibly $5.50 on the front end. But again it is a weather market and wouldn't de-emphasize that in anyway, but again it is an inelastic commodity and if we don't have the supply they will bid up for it." USDA left barley supply and use unchanged but did narrow the range of its price projection by a nickel on each so its now $2.40 to $2.50 a bushel. U.S. corn stocks were cut 50 million bushels from last month due to increased exports, primarily to Asia. The projected price range for old crop corn is $1.85 to $2.05 a bushel, up a dime on the low end. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.
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