With the dog days of summer just around the corner, grain and oilseed producers are keeping a wary eye on the weather. That's especially true in wheat country, where the Agriculture Department claims everything from freezes to dry weather and hail storms have taken a toll on the crop.
The wheat supply is predicted to show a decline of 45 million bushes from last month to 2.14 billion bushels. Cold-snaps, dry spells and hail stones were among the reasons given by the USDA as reasons for the decline. The results are putting the government price estimate at between $2.65 and $3.15 per bushel, down from last year's $3.39 a bushel.
Soybean production is now forecast at 2.9 bushels, remaining steady with May's numbers but down 8 percent when compared to last year's record. Exports of the oilseed are expected to rise to a record 1.13 billion bushels. The higher projection is based on an increase by Brazil which is recovering from its drought. This month's export numbers show the potential for South America to account for just below half of the world-wide export business. Season average prices for the 2005 crop year are projected at between $4.95 and $5.95.
The forecast for the corn crop remains roughly the same with pricing being the only significant number. The season-average price is now predicted to fall between $1.55 to $1.95, down from the 2004 crop year numbers of $2 to $2.10.