After getting a look at last week’s USDA prospective plantings and grain stocks reports for wheat.
“The higher prices we’ve seen lately for wheat protein is likely to be pushed down a little bit by the news today,” said USDA’s Chief Economist Rob Johansson. “Both from the stocks perspective, but also from the planted acreage perspective.”
Total acreage estimated for the 47.3 million acres, up 3% from a year ago, winter wheat, 2.7 million is up less than a percent from last season but still a bit higher than expected. Farmers’ responses to USDA on intended spring wheat acreage is 12.6 million acres, a 15% hike compared to a year ago, and quite a bit higher than trade estimates.
“We have seen deterioration of the conditions of the winter wheat crop, so producers are planting with the expectation that there will be an uptick in premium for spring wheat,” Johansson said. “So, we do see an additional 1.6 million acres in spring wheat, mostly in North Dakota, and a good amount in Minnesota as well.”
USDA also reported March 1st wheat stocks down 10% from a year ago, which is still the second highest March stocks in 20 years.
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