Wheat production estimates for the European Union and former Soviet Union nations have been raised, which potentially could affect world demand and therefore wheat prices.
Kim Anderson, Oklahoma State University Cooperative Extension grain marketing specialist, said the recently released foreign wheat production numbers bear some watching by producers here in the United States.
“Foreign wheat production will be competing with us this next marketing year,” he said. “While U.S. Department of Agriculture analysts are predicting a record wheat crop for the world, they’re not predicting a record for consumption, so I think we’ll see some building of stocks on the world market this year.”
There is some question whether producers in the northern United States will be able to get as many acres of spring wheat planted as they had hoped. The ultimate answer to this question may help buoy wheat prices.
Grain elevators have increased their basis over the July futures contract. Anderson said local producers can forward contract this year’s crop in the $7.20 to $7.25 per bushel range.
In addition, U.S. corn planting had been running behind schedule. However, producers planted a record 42 million acres last week.
“Corn producers have just worked miracles,” Anderson said. “Of course, prices have backed off a little bit after the report came out and that bleeds over into the wheat market.”