Home / Markets / Markets Analysis / Wheat market / U.S. growers seen boosting hard red spring wheat acres

U.S. growers seen boosting hard red spring wheat acres

Agriculture.com Staff 03/23/2006 @ 1:11pm

Despite numerous private consultant projections of lower acreage, U.S. growers may slightly increase their HRS plantings this year, according to an industry expert.

Jim Peterson, North Dakota Wheat Commission (NDWC) marketing director, told the U.S. Wheat Associates this week, reasons for more HRS acres keep cropping up.

North Dakota grows about half of the spring wheat produced in the United States.

"The February and early March uptrend in wheat prices has been good for turning interest back to spring wheat, and away from soybeans, canola, corn and barley," Peterson said. "The high cost of nitrogen is a real factor and there is no doubt that crops like peas, flax and lentils -- which require less fertilizer -- are going to attract some attention away from many crops, not just spring wheat. But with prices like they are, it's more likely that wheat plantings in our area will be unchanged or slightly higher than last year."

North Dakota's wheat plantings increased by 11 percent in 2005 as compared to 2004, coming on the heels of two very good wheat years in North Dakota in 2003 and 2004. Earlier this winter, many private consultants were projecting at least a 10 percent cut in North Dakota wheat plantings for 2006. The fact that private forecasters now have North Dakota wheat plantings back to unchanged or slightly higher is a big shift, Peterson said.

"In terms of wheat class shifts in 2006, spring wheat will likely be higher and durum acres will be lower given the price difference between the two," Peterson said. "Typically, durum commands a $.50/bushel premium to 14 percent protein spring wheat but this year it has been more than $.50/bushel discount for much of the market season."

Peterson said that the uncertainties that remain, however. "Just like the HRW crop has 9 lives and keeps the market guessing, northern producers will likely keep their final planting decisions fluid through spring given the tighter budgets for all crops and the uncertainty Mother Nature always seems to bring," he says. "Of course any significant sell-off in wheat prices before planting season can still sway producers' plans as well."

The USDA will issue its prospective planting report for spring wheat on March 31.

Meanwhile, National Oceanic and Atmospheric Administration (NOAA) announced last week normal to above normal precipitation for the northern Plain's spring outlook.

The U.S. Spring Outlook for April through June indicates below-normal precipitation for much of the central and southern Plains, as well as the Southeast and Gulf Coast. Above normal precipitation is favored across the northern Plains and Great Lakes region. The remainder of the country has equal chances of above, near or below normal precipitation.

Despite numerous private consultant projections of lower acreage, U.S. growers may slightly increase their HRS plantings this year, according to an industry expert.

CancelPost Comment
MORE FROM AGRICULTURE.COM STAFF more +

Farm and ranch risk management resources By: 07/07/2010 @ 9:10am Government resources USDA Risk Management Agency Download free insurance program and…

Major types of crop insurance policies By: 07/07/2010 @ 9:10am Crop insurance for major field crops comes in two types: yield-based coverage that pays an…

Marketing 101 - Are options the right tool… By: 07/07/2010 @ 9:10am "If you are looking for a low risk way to protect yourself against prices moving either higher or…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Cool Tools Christmas Edition: Part 2