What is in this article?:
• Prices appear stable as the price ratio of corn and wheat is returning to a traditional relationship.
• Fundamentals are not bullish going into planting for 2012.
• However, concern for global exports and moisture for winter seeding in the U.S. are supporting prices.
Georgia harvested the same acres as last year, but wheat production dropped due to lower yields.
Planted acreage rose 30,000 to 280,000 acres but a lower percentage was carried to harvest for grain.
The average yield for Georgia was pegged at 44 bushels per acre, down 20 percent from 2011.
Wheat prices dropping to below $6 per bushel discouraged more production as well as increasing costs.
Total U.S. soft red winter (SRW) wheat production is lower in 2012 as both planted and harvested areas and yield are lower. Planted and harvested area for 2012 was down 3 percent, while yield was down 1.2 bushels to 60.5 bushels per acre.
Overall U.S. wheat production (all wheat types) is forecasted up 11.3 percent. Planted acreage rose 3 percent to 56 million and harvested acreage increased 6 percent to 48.8 million acres.
The average U.S. yield for all wheat is forecast up 2.75 bushels to 46.6 bushels per acre.
Prices were down over much of the year past until corn and soybeans price jumped and production problems surfaced in global exporting regions.
Soft red winter wheat prices ranged between $5.25 and $6.00 during October 2011 after trading at $7 during harvest. Prices began a sharp run-up in mid-June breaking $8 in July.
Prices appear stable as the price ratio of corn and wheat is returning to a traditional relationship. Fundamentals are not bullish going into planting for 2012. However, concern for global exports and moisture for winter seeding in the U.S. are supporting prices.
Planting should increase over last year and particularly harvested acreage in Georgia.
Total production for all wheat for 2012 is projected up 13.6 percent from last year at 2.27 million bushels. Soft red winter and white were decreased in size while hard red winter, hard red winter and durum jumped prior year’s poor yields.
Hard red winter wheat is up 13.4 percent, hard red spring is up 18.2 percent, and durum is up 6 percent.
Soft red winter is the third largest contributor to total production at 435 million bushels, nearly equaling hard red spring.