According to presentations made at the USDA’s annual Outlook Forum, US farmers will produce 20% less wheat than in 2016. They planted 3.8m fewer acres in winter wheat, falling to the crop’s lowest area in 108 years. Following last year’s record harvest, yields, too, are forecast to fall by 10%, with drought episodes in several areas over the past few months. This means the US should export 1.4mt less wheat than last year.
The USDA is expecting the US farmgate wheat price to average €148/t for the coming season (based on a $4.30/bushel forecast at the current exchange rate), up 12% on this past year’s.
Maize production, meanwhile, is expected to fall by 7% year-on-year. The planted area is losing out to soya bean, too, and yields are also expected to return to usual trends. This will especially affect exports, which are forecast to fall by more than 8mt.
The USDA is forecasting an average US maize price of €131/t ($3.50/bushel), up 3% on 2016-2017.
Importantly for Irish livestock farmers, the USDA is also expecting the price of soya bean to rise, but only by 1%.
Futures for both winter wheat and maize recorded price falls on Thursday and Friday as the USDA’s Outlook Forum unfolded, following strong harvest forecasts in Europe and Australia earlier in the week.
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Grain prices slip again as prospects for 2017 remain good
According to presentations made at the USDA’s annual Outlook Forum, US farmers will produce 20% less wheat than in 2016. They planted 3.8m fewer acres in winter wheat, falling to the crop’s lowest area in 108 years. Following last year’s record harvest, yields, too, are forecast to fall by 10%, with drought episodes in several areas over the past few months. This means the US should export 1.4mt less wheat than last year.
The USDA is expecting the US farmgate wheat price to average €148/t for the coming season (based on a $4.30/bushel forecast at the current exchange rate), up 12% on this past year’s.
Maize production, meanwhile, is expected to fall by 7% year-on-year. The planted area is losing out to soya bean, too, and yields are also expected to return to usual trends. This will especially affect exports, which are forecast to fall by more than 8mt.
The USDA is forecasting an average US maize price of €131/t ($3.50/bushel), up 3% on 2016-2017.
Importantly for Irish livestock farmers, the USDA is also expecting the price of soya bean to rise, but only by 1%.
Futures for both winter wheat and maize recorded price falls on Thursday and Friday as the USDA’s Outlook Forum unfolded, following strong harvest forecasts in Europe and Australia earlier in the week.
Read more
Grain prices slip again as prospects for 2017 remain good
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