09/13/05 USDA projects better wheat price

Farm and Ranch September 13, 2005 USDA's supply and demand report for wheat issued Monday trimmed ten million bushels from projected 2005-2006 U.S. ending stocks compared to last month's report. That would put U.S. wheat carryover at 624 million bushels. But that's an increase over last year's ending stocks of 540 million and Peter Georgantones of Investment Trading Services in Bloomington, Minnesota says it's no big deal. Georagantones: "There is nothing to get excited about when you have a 624 million bushel carryout of wheat. It is hard to get riled up here. One thing all these markets have going for them is the world numbers keep tightening up. They are tightening up in wheat. They are tightening up in corn believe it or not. And they are tightening up in soybeans as well." World wheat carryover is now forecast at 139.6 million tons and that would be less that the previous year's nearly 148 million tons. U.S. ending stock numbers were reduced because of increased food use. Overall exports were unchanged though USDA did increase hard red winter exports while decreasing export projections for other classes. White wheat carryout is now pegged at 106 million bushels. Last year's was 62 million. Still, USDA issued an improved price outlook for wheat compared to last month. The projected 2005-2006 price range is $3 to $3.40 a bushel, up 15 cents on the low end and up five cents on the high end. This past season's national average price was $3.40. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.