The USDA predicted this week that the outlook for U.S. wheat is for larger supplies and use, but lower prices.
USDA projected total U.S. wheat production to be 12% above last year’s weather-reduced crop. At nearly 2.25 billion bushels, it is forecast to be the biggest wheat crop in four years.
At 45.7 bushels per acre, estimates for the total wheat yield is up 2 bushels from last year but more than a half a bushel below 2010/11 yields.
Total U.S. wheat use is estimated to increase by 8 percent due to expectations of higher domestic and foreign demand. Wheat used for food is projected to increase by 1.5 percent to 945 million bushels. Feed and residual use is estimated at 230 million bushels, an increase of nearly 3 percent from last year.
World wheat production is forecast to decline almost 3 percent in 2012/13 because of conjecture that the Soviet Union and Australia will not be able to match last year’s exceptional yields. It is expected that foreign wheat production will be down nearly 4 percent to 616 million tons and world wheat trade is expected to decline 5 percent to 137.4 million tons due to decreased demand for feed-quality wheat.