U.S. Springs Wheat Data

Agricultural Aug 18, 2011 No Comments

WheatThe U.S. Department of Agriculture quietly released estimates it usually keeps under wraps, shedding more light on how much this year’s flooding disrupted wheat plantings and roiling grain markets.

That sent prices of the type of wheat in question, hard red spring wheat, soaring. Futures have surged more than 6% percent this week to end Wednesday at $9.1675 a bushel, a two-month high. It’s referred to as “spring” wheat because what’s when it’s planted.

Traders caught on to the new data set, posted on the USDA’s web site, earlier this week and latched on to figures indicating that the size of the nation’s prized fall wheat crop could be smaller than expected.

Supplies of this wheat, which is used to make bread flour and is in high demand by other countries, have tightened since a historic drought hurt the spring harvest in states like Texas and Oklahoma.

This new data showed that more than 2.6 million acres, mostly in the northern U.S. Plains, didn’t get planted as planned. The number undercut previous U.S. government estimates.

via U.S. Springs Wheat Data – WSJ.com.

Tags : ,

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

Leave a Reply

Your email address will not be published. Required fields are marked *