U.S. wheat stocks up but white wheat carry over drops
Farm and Ranch December 14, 2009 In its December supply and demand report the USDA raised its projected U.S. wheat ending stocks for the current marketing year 15 million bushels to 900 million. The department reduced food use of wheat by 15 million bushels because of higher than normal extraction rates for flour. The overall export number was unchanged but there were some modifications among classes that cancelled each other out. Helen Pound of Penson GHCO says USDA boosted white wheat exports by ten million bushels dropping ending stocks for that class, grown mostly in the northwest, to 42 million bushels or a stocks-to-use ratio of 15 percent. Pound: “And that really reflects the ability to ship off the West Coast at more at more advantageous of lifting and export rates than at the Gulf or the Atlantic for the soft red winter wheat. So of the low protein wheats we are losing demand for the soft red winter wheat. We are gaining demand for the white wheat, which has better exports off the West Coast. As I said the white wheat goes from a carryout versus usage last month of 20% down to 15% this month. So that is the only one that is kind of tight.” USDA lowered exports for soft red winter and hard red winter wheat. Not much change for spring wheat but Pound says it is has the most abundant supply of any U.S. wheat class. I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on the Northwest Ag Information Network. ?
