USDA’s production-related numbers were little changed in today’s report but by the time to you to the bottom line—ending stocks, small changes in supply and usage trimmed 50 million bushels out of the equation. USDA projects 2010/11 ending stocks at 853 million versus 902 in the September report and down from 976 for the 2009/20 crop year. As a result, national average cash price is pegged at $5.20 to $2.80, up from $4.95 to 5.65 in the September report.
The lack of soil moisture in the Midwest and Delta is disheartening to wheat growers there, says Jerry Gulke of the Gulke Group. “They need rain to get the new crop up and growing.”