Despite an anticipated increase in production this year, U.S. wheat supplies are forecast to remain tight in 1995-96, Agriculture Department economists say.
And, because most major competing countries also anticipate expanding production this year, U.S. wheat exports are expected to face increased competition.
Farm prices for the grain could drop by 15 to 20 cents per bushel, according to USDA’s Economic Research Service.
This year’s wheat crop is expected to be 75 million to 100 million bushels higher than the 2.3 billion bushels produced in 1994. That forecast is based on an increase in planted area of 500,000 to 1 million acres and an assumed yield of 38.5 bushels per acre.
Carrying stocks on June 1 are expected to be 112 million bushels less than a year earlier.