USDA Raises Forecasts For Wheat Yield And Production

The U.S. Department of Agriculture on Wednesday raised its forecasts for U.S. wheat production and average yield from those made a month ago, although both new predictions are lower than 2008 levels.

U.S. farmers are now expected to produce 2.184 billion bushels of wheat for the 2009-10 marketing year — an increase from the July prediction of 2.112 billion — and the average yield estimate was raised to 43.3 bushels per acre, up from 41.9 bushels/acre, according to the USDA’s World Agricultural Supply and Demand Estimates report. The U.S. produced 2.5 billion bushels of wheat last year and the average yield was estimated at 44.9 bushels/acre.

The forecasts for production of all classes of wheat except soft red winter were raised from last month, the USDA said. “The largest increases are for hard red spring wheat and durum, reflecting
sharply higher expected yields in the Northern Plains.”

Total winter wheat production is now forecast at 1.54 billion bushels for the 2009-10 marketing year, a 21% increase from USDA’s July forecast and a 15% increase from last year. Durum wheat production
is forecast at 98 million bushels — 21% higher than last month’s USDA prediction and 15% more than last year. Other spring wheat production is predicted at 548 million bushels, 8% higher than the
July forecast and about 1 million bushels more than last year.

Source: CME Group