Producers may see a sharp drop in U.S. wheat prices
As winter wheat planting finishes up across the country, and the crop emerges, producers are looking at prices they could receive for their crop.
USDA Outlook Board Chair Mark Jekanowski explains why it is likely going to be a sharp drop.
“Production is up but also exports continue to be historically low. The U.S. is not been very competitive in export markets lately and we’re at about a 50-year low in terms of our exports. So with higher production and relatively lower global demand for U.S. wheat, that’s been pressuring prices.”
U.S. wheat production is up 10 percent and exports are expected to fall by 7 percent. USDA knocked another dime off its forecast for average prices, it is now 18 percent off a year ago.