Spring Wheat Planting Acreage Rises

Spring Wheat Acreage

In somewhat of a surprise, spring wheat acreage will be higher by about 5 percent, although estimates of wheat plantings for the year are that they'll be down by 9 percent, according to the Planting Intentions Report.

Total acreage to be planted includes hard red and white wheat, and will come in at 13.9 million acres.

Although the final numbers aren't in yet, not much is expected to change in any major way.

This is surprising in light of the continuing downward pressure on wheat prices. It seems farmers would wisen up and plant another crop they can actually make money on.

Wheat Prices Fall to Exchange Limit on Rising Supply

While wheat didn't revise estimates near as much as corn, global projections still rose 0.7 percent to 148.4 million metric tons by the close of the marketing year on May 31, according to the USDA.

Estimates are there will be a surplus of U.S. wheat of 655 million bushels - an increase of 5.1 percent - by May 31. That will be over double the 306 million bushels available last year.

December wheat inventories in the U.S. increased by 26 percent to 1.422 billion bushels on December 1, a 26 percent increase over last year's 1.132 billon bushels.

Wheat futures for March delivery dropped 59.75 cents, or 9.5 percent, to $5.6975. Earlier in the session it dropped to its 60 cents limit.

From September to December, farmers planted 42.098 million acres, down from the 46.281 acres in 2007.

Cold Weather Drives Up Weekly Wheat Prices

With the bulls concerned over the first strong cold weather of the season possibly may damage the dormant wheat crops, prices for the week ended up.

Even though Friday prices were softer, the overall week had KCBT wheat rising by 44.75 cents to $5.83 a bushel, MGE grew by 35.25 cents to $6.2525 a bushel and March CBOT led them all, gaining 50.25 cents to finish the week at $5.6325.

Although there was worries over the weather, a number of meteorologists suggested the cold spell probably wouldn't do enough damage to the crops to make much of a difference. Even so, prices rose on the possibility.

Weather will be especially rough in the central and southern Plains, with below-zero forecasts in the mix. Some of the concern was directed to areas that had little or no snow to protect from the bitterly cold temperatures.

Of course it won't be known until the spring if the dormant crop really had any damage to it, so it's a wait-and-see game at this time.

Spring wheat traded on the MGE hasn't been planted yet.

Wheat Down 40 Percent from February High

Since the record price of wheat in February, prices have continued to fall as an expected large harvest has caused the golden grain to fall by 40 percent since the $13.50 a bushel record.

On the Chicago Board of Trade (CBOT) soft red winter wheat has plunged to $8.01 a bushel, the lowest since November 2007.

According to the International Grain Council, wheat will probably reach a record harvest of 645 million tons in 2008-09.

"The big rise in prices in 2007 and early 2008 was a strong incentive to increase the planting of wheat," said Sudakshina Unnikrishnan, an agricultural analyst at Barclays Bank.

"The market is pricing-in expectations of a bigger crop from summer onwards."

Government subidies by the U.S. and Europe for corn-based ethanol has been a major contributor to the price increases, as farmers over the last several years have taken acreage out of wheat production and put it into corn.

Wheat farmers will probably be a year too late to get the huge prices, as their huge harvest will cause price decreases, as is already being factored into the market.

Global Wheat Production Expect to Increase 6%

A report from Utrecht, Netherlands-based Rabobank, says the global production for wheat should increase by 6 percent this year, making it a record harvest globally.

Motivating the higher output is the increasing prices of the commodity, based on growing food demand, investors, biofuels and feed for animals. Stockpiles around the world also plunged last year causing the grain to increase in price as well.

"Wheat production is forecast to rebound strongly, resulting in a partial recovery in world inventory levels and taking some pressure off world prices,' a team of analysts in Sydney, Australia, wrote in the report.
It is expected the harvest will bring in an additional 37 million metric tons to bring the total for the the year to 640 million tons. Stockpiles around the world should grow by 9 percent as a result.

This should help bring prices down during the second half of 2008 said the report, as production grows beyond demand by about 12 million tons.

Wheat News Weekend Roundup

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Spring wheat market shows some recovery

Despite a slightly bearish Prospective Plantings Report, the spring wheat market showed signs of recovery in the days following.

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World Wheat Production Boosted This Month, Consumption Trimmed, & Stocks Raised

World wheat production in 2007/08 is projected up 1.7 million tons this month to 606.7 million. The major increase is for Ethiopia, up 1.2 million tons as very good rains boosted yields.

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Adani sees wheat output at over 75mt

A bigger wheat crop is crucial to efforts by Prime Minister Manmohan Singh’s government to cool inflation that’s running at a three-year high before next year’s general elections.

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Scientists pit bacteria against fungi to protect wheat

Beneficial flower-dwelling bacteria could soon join the fight against Fusarium graminearum, the fungus that causes Fusarium head blight disease (scab) in wheat, barley and other cereal crops.

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Philippines Seeks Wheat Supplies After China Rebuff

The Philippines said China turned down a request to supply wheat, adding to concern that the world faces a worsening shortage of staple foods that has already driven grain prices to records.

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US Wheat Outlook: Seen Mixed On Overnight, CBOT Rebound

U.S. wheat futures are poised to start Friday's day session mixed, with Chicago Board of Trade contracts seen rising in a rebound from losses, traders said.

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The Weekend Wheat News

Wheat outlook and news


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Grant Given to Cornell to Fight Wheat Disease

Bill and Melinda Gates Foundation awards Cornell $26.8 million.

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US Wheat Review: Up On Short-Covering; MGE May Rises Limit

U.S. wheat futures ended higher Friday on technical buying and short-covering, with the nearby Minneapolis Grain Exchange contract closing limit-up for the third consecutive day.

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Strength in beans and wheat could not rally corn

Wheat opened higher and closed sharply higher. Minneapolis wheat was limit up again and synthetically trading another $1 higher. This carried the HRW and SRW contracts sharply higher on the day.

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Wheat planting up; corn down

The release of the 2008 U.S. Department of Agriculture prospective planting report this week shows wheat acreage up and corn acreage down, which led at least one analyst to predict corn rationing.

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Triticum Mosaic Virus adds new wrinkle to wheat disease picture

Kansas wheat producers needing another reason to control volunteer wheat have a new reason for consideration. First found by Kansas State University researchers in 2006, a newly discovered virus affecting wheat was officially recognized and named Triticum Mosaic Virus in 2007.

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Wheat Jumps on Weather Concerns

Wheat prices shot up Friday as investors bet that a mix of wet and dry weather in wheat-growing U.S. states will damage crops and tighten supplies of the grain used to make bread, pasta and other foods.

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Wheat Acres

The USDA reported planting intention estimates on Monday, March 31. The highly anticipated report held little in the way of major surprises, but the current supply situation and high prices require market participants to look at this report with a great deal of scrutiny. While it appears the marketplace has quickly forgotten about the bearish aspects of the report, market participants will continue to measure factors such as domestic and global demand and weather problems against the potential wheat production set forth by this report.

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Wheat rated in mostly fair to good condition

Winter wheat was 9 percent pastured last week, with the crop rated in mostly fair to good condition.

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