VIDEO: Acreage battle, wheat prices eyed by analysts
World wheat supplies and a battle for acreage in the U.S. become two issues the commodities market will stay focused on, folliowing this week’s USDA August Crops Report, analysts say.
In its report, the USDA lowered world wheat carryover from 187.1 million metric tons in July to 174.8 million metric tons. The sharp drop comes as a result of the Russian drought that is dropping that country's 2010 output significantly. In addition, the Russian Prime Minister announced Friday the country’s winter wheat sowings will be cut by one-third.
Jerry Gidel, North American Risk Management Services, says the wheat market is high but is not headed for 2008 levels.
With the world wheat problems sparking heavier wheat planting intentions in the U.S., Dan Basse, AgResource Company, says a battle for acreage is inevitable for 2011.
2011 Acreage Battle Dan Basse Dan Basse, AgResource Company
In its report Thursday, USDA raised the U.S. 2010 corn production to 13.4 billion bushels, up 2% from a previous record set in 2009. For soybeans, the U.S. 2010 production was hiked 2% vs. last year. USDA estimates a 2010 soybean yield at 44.0 bushels per acre, equal to last year’s record-setting yield.