Wednesday, September 12, 2007

Wheat hits record high

For wheat farmers who still have grain to sell, there was some good news today: Prices hit a record high $9 per bushel today.
This was influenced by the USDA projecting that U.S. stockpiles will be at a 33-year low by the end of the year, at 362 million bushels, while world wheat stocks are predicted to be 112 million tons, the lowest since 1973-74.

One of the things influencing wheat prices is bad crops in other parts of the world. As Capital Press report Scott Yates, from Spokane, Wash., wrote in a story, "Global wheat production is projected 4.2 million tons lower. Production in Canada was lowered 1.2 million tons in the latest report and EU output was reduced 3.1 million tons. Australia's production was lowered two million tons to 18 million tons, but some observers believe that figure is still too high and that 15 million tons would come closer to the mark."

An Associated Press story today said "The run-up in U.S. wheat — which topped $9 a bushel for the first time ever — grows out of months of robust demand from foreign buyers, who are shopping in an increasingly tight global market and have been willing to pay record-high prices as a result .... The December wheat contract jumped 11.5 cents to $9.02 a bushel, after rising as high as $9.07 a bushel."

To see Yates' story as well as the AP one, check out news updates today on

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