No Surprises for Wheat in November's USDA Reports

The grain market was closed yesterday for the Thanksgiving holiday so today we will review the results of the USDA releases early this month of the Crop Production and World Ag Supply and Demand Estimate Reports.

Washington State University Ag Economist and Tom Mick Endowed Chair Dr. Randy Fortenbery says

Fortenbery: "There were basically no surprises and if you look at the overall numbers. The market sort of trading that way as well. What was a little bit surprising -- maybe -- is that despite a record size corn crop - corn ended up pretty good for the day and wheat did not follow it. We've had good separation of wheat from corn over the last few weeks and we have a pretty good premium off the soft red winter wheat in Chicago relative to corn - so that may explain some of that. But generally relative to the small grains report we received in September there were no surprises. The one thing I was a little surprised about was I thought that we maybe we'd get a bit of an increase in overall wheat exports because up through about two weeks ago we had aggressive export pace. But that did not happen for white wheat there was no charge in exports whatsoever."

He said to pay attention to the corn prices into the future relative to wheat prices as $2 premium of Chicago wheat to corn is something that the wheat market has not been able to sustain for very long in several years.

The market resumes trading today and we will have our regular market line report on Monday.