Rain in Kansas has slowed down the wheat harvest, as just after it got started things had to be temporarily shut down.
Estimates are farmers will have to wait until the weekend before resuming harvest, which was very spotty across the state.
The largest amount of wheat harvest I heard of was in the Kiowa area, which was able to complete 232,000 bushels last weekend before the rains came.
About 12,000 bushels were completed near Arkansas City before several inches of rain shut that down as well.
Friday, June 11, 2010
USDA Confirms Too Much Wheat
The wheat ending stocks are projected to be at 991 million bushels, according to the latest USDA figures, down a little from May, but irrelevant because of the enormous supply.
Even with the news out of Canada that wheat production is lower because of less acreage planted than originally thought, it's not going to do much to move prices at all.
And there is so much wheat the wet weather keeping farmers from planting their fields won't do anything either.
I talked about this last year, and it continues to puzzle me why farmers don't move out of their wheat planting and into a more profitable crop.
Add to this the increasing number of wheat farmers and production around the world and there is little reason to pursue wheat at this time.
Even with the news out of Canada that wheat production is lower because of less acreage planted than originally thought, it's not going to do much to move prices at all.
And there is so much wheat the wet weather keeping farmers from planting their fields won't do anything either.
I talked about this last year, and it continues to puzzle me why farmers don't move out of their wheat planting and into a more profitable crop.
Add to this the increasing number of wheat farmers and production around the world and there is little reason to pursue wheat at this time.
Tuesday, June 8, 2010
Wheat Woes Continue, Plunge to Three-Year Low
Good weather has resulted in a strong wheat crop, and consequently wheat futures plunged to a 3-year low as harvest in the southern U.S. Great Plains States begins.
Precipitation was the major factor in the bumper yields, as there was four times as much rain in the last month than normal, according to National Weather Service data.
Wheat futures for July delivery fell 3.5 cents, 0.8 percent, to $4.3225 a bushel on the Chicago Board of Trade, after reaching $4.31 a bushel, the lowest price for a most-active contract since April 3, 2007.
With the growing number of wheat farmers around the world and bumper wheat crops, there continues to be little reason prices will increase going forward, and makes you wander why farmers continue to plant the grain, other than government subsidies.
Precipitation was the major factor in the bumper yields, as there was four times as much rain in the last month than normal, according to National Weather Service data.
Wheat futures for July delivery fell 3.5 cents, 0.8 percent, to $4.3225 a bushel on the Chicago Board of Trade, after reaching $4.31 a bushel, the lowest price for a most-active contract since April 3, 2007.
With the growing number of wheat farmers around the world and bumper wheat crops, there continues to be little reason prices will increase going forward, and makes you wander why farmers continue to plant the grain, other than government subsidies.
Saturday, May 8, 2010
Winter Wheat Production Down 3.7 Percent
With farmers planting 13 percent less acreage of wheat this year, the winter wheat production is projected to fall 3.7 percent, according to Informa Economics.
This year will bring in approximately 1.466 billion bushels of wheat, in comparison to the 1.523 billion bushels last year.
Yields should rise to about 46 bushels an acre from the 44.2 bushels an acres produced in 2009.
Harvests are up a little from estimates because of the increased bushels an acre. Spring and winter wheat should drop from 2.216 billion bushels in 2009 to 2.079 billion bushels this year, an increase from the 2.04 billion bushels estimated to come in.
Hard red winter wheat will rise over last year, bringing 964 million bushels, a gain from the 919 million produced last year.
Soft red winter wheat on the other hand will drop significantly from the 404 million bushels last year to 295 million bushels in 2010.
This year will bring in approximately 1.466 billion bushels of wheat, in comparison to the 1.523 billion bushels last year.
Yields should rise to about 46 bushels an acre from the 44.2 bushels an acres produced in 2009.
Harvests are up a little from estimates because of the increased bushels an acre. Spring and winter wheat should drop from 2.216 billion bushels in 2009 to 2.079 billion bushels this year, an increase from the 2.04 billion bushels estimated to come in.
Hard red winter wheat will rise over last year, bringing 964 million bushels, a gain from the 919 million produced last year.
Soft red winter wheat on the other hand will drop significantly from the 404 million bushels last year to 295 million bushels in 2010.
Saturday, April 10, 2010
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.
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.
Wednesday, March 10, 2010
Wheat Outlook Dismal on Supplies
Wheat Inventory High
Stockpiles of wheat are leaving the industry reeling even more, as the largest inventory in over 20 years is emerging from the heavy wheat harvest.
Projections are there will be close to 1 billion bushels of wheat in the warehouses and bins when the harvest comes in; 20 million bushels beyond the estimates of the USDA.
The already low prices will drop even lower, as farmers continue to plant the grain based on prices from several years ago, rather than prevailing market conditions.
This is expected to finally correct the over-planting of wheat as farmers look to other areas to generate profits, as wheat hasn't been doing it for a few years.
The reasons for wheat being so abundant is lower exports as many countries are planting wheat and getting good results, and American consumers aren't consuming as much, driving domestic demand down. That and just too much wheat being planted is the issue driving the huge wheat inventory.
Wheat Inventory High
Stockpiles of wheat are leaving the industry reeling even more, as the largest inventory in over 20 years is emerging from the heavy wheat harvest.
Projections are there will be close to 1 billion bushels of wheat in the warehouses and bins when the harvest comes in; 20 million bushels beyond the estimates of the USDA.
The already low prices will drop even lower, as farmers continue to plant the grain based on prices from several years ago, rather than prevailing market conditions.
This is expected to finally correct the over-planting of wheat as farmers look to other areas to generate profits, as wheat hasn't been doing it for a few years.
The reasons for wheat being so abundant is lower exports as many countries are planting wheat and getting good results, and American consumers aren't consuming as much, driving domestic demand down. That and just too much wheat being planted is the issue driving the huge wheat inventory.
Wheat Inventory High
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