WHEAT: WORLD MARKETS AND TRADE
MONTHLY HIGHLIGHTS: See PDF version for charts
U.S. Spring Wheat Area Expected to Fall to a 20-Year Low: Total U.S. spring wheat planted area is forecast to continue to shrink in 2007 because wheat area in the Northern Plains is expected to shift into corn as a result of high prices and strong demand for ethanol use. Non-durum spring wheat area is forecast to fall 7 percent, while durum area is expected to rise 6 percent from last year’s very low level. Smaller than expected spring wheat area will be more than offset by a boost in winter area as a result of high prices at planting last fall. Consequently, total U.S. production is expected to be larger next year, which could allow for stronger exports.
Domestic: For March, most class prices fell on lower corn prices as well as expectations of a bigger new crop due to larger planted area and continued favorable growing conditions. White prices have sky-rocketed due to strong demand in Asia, which is the result of slack competition from Australia. For the month, Hard Red Winter (HRW) fell $15 per MT, Hard Red Spring (HRS) fell $5, Soft Red Winter (SRW) fell $16, and Soft White (SWW) climbed $18.
TRADE CHANGES IN 2006/2007
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Last modified: Tuesday, April 10, 2007