Rain Brightens Wheat Prospects

Fall rain across the central Plains has
helped get the 2012 winter wheat crop off to a good start.
But commodity market watchers are eagerly anticipating
Wednesday’s release of the U.S. Agriculture Department’s latest
estimate of the available world wheat stock. That report will be
issued amid already volatile prices and a forecast for continued
drought in the nation’s breadbasket.
Last month’s snapshot depressed wheat market prices because
projections of available stocks were higher than expected for the
current marketing year. Projected U.S. wheat production was down
last month, but the available supplies were up because of lower
exports and lower wheat feeding projections.
Kansas State University economist Dan O’Brien says expectations
for the November estimate are for world wheat stocks to be down
marginally.