USDA provided some surprises for the wheat market in the August WASDE with a drop in production, acreage and ending stocks.
Where did the cuts come from?
Randy Martinson, Martinson Ag, says all wheat production was cut by 28 million bushels with the biggest cut in the Other Spring Wheat category.
Hard Red Spring Wheat production was lowered by 34 million bushels after most expected an increase.
He says, “Everyone assumed production would go up after the Wheat Quality Council found some record yields in North Dakota.”
While total wheat acreage dropped 900,000 acres, spring wheat acreage alone was also lowered by 555,000 acres.
So what does this mean for price moving forward?
He says ending stocks are still fairly high at 828 million bushels, even after the 28 million bushel cut.
Plus, the other big problem for the market has been demand has not been strong enough to chew threw the largest supplies.
