Home / Markets / Markets Analysis / Wheat market / High stocks numbers send wheat tumbling

High stocks numbers send wheat tumbling

Jeff Caldwell 12/10/2013 @ 11:45am Multimedia Editor for Agriculture.com and Successful Farming magazine.

While the increased uses of U.S. corn and soybeans were the first headlines revealed in Tuesday's USDA World Agricultural Supply and Demand Estimates (WASDE) report, one figure sticks out to traders and brokers that could have a larger effect on the global grain marketplace than either of the other two: massive world and U.S. wheat supplies.

"Projected U.S. wheat supplies for 2013/14 are raised 10 million bushels this month with higher projected imports. Record production and higher exports for Canada are expected to add to wheat supplies in the United States," according to Tuesday's WASDE report. "Projected ending stocks are raised 10 million bushels. The 2013/14 projected season-average farm price is lowered 10 cents at the midpoint with the range narrowed to $6.65 to $7.15 per bushel as near-record world supplies and increased export competition reduce price prospects for U.S. wheat."

These figures stuck out to Dax Wedemeyer. The broker for U.S. Commodities in West Des Moines, Iowa, says they're likely to cause wheat to slide to contract lows. "If anything was unexpected, it was this increase in global wheat supply," he says of Tuesday's report.

CancelPost Comment
MORE FROM JEFF CALDWELL more +

3 Things to Watch This Morning: Friday… By: 11/21/2014 @ 6:34am Weekend weather shift on the way.Though some of it's melted in the last few days, there is…

President Obama Lays Out Immigration Reform… By: 11/20/2014 @ 8:25pm In his address to the nation focusing on steps moving forward on federal immigration policy…

Immigration and Farm Labor Changes Ahead? By: 11/20/2014 @ 12:26pm Whether your farm or ranch depends directly on immigrant labor or not, chances are high that…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Cool Tools Christmas Edition: Craftsman Two-in-One