(Market and Trade Economics Division)
Total U.S. wheat production is projected at 2,307 million bushels, down
8 million bushels from last month. Production prospects for other spring
wheat in 1999 declined during August, and the yield projection was
reduced from 34.2 bushels to 33.9 bushels per harvested acre. The yield
projection for durum wheat was reduced 3 percent to 28.3 bushels per
harvested acre. Total wheat supply is projected at 3,357 million
bushels, down 7 million from last month, but still the second highest
since 1987/88. Wheat prices have been under significant pressure as
record yield prospects for winter wheat boosted production prospects
during the summer. Even though 1999 production is projected down, the
large supplies will continue to pressure cash and futures prices for the
remainder of the marketing year. The price received by farmers during
the first 2 months of 1999/2000 (June-July) averaged $2.36 per bushel,
30 cents below the same period last year.
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