Foreign Demand For U.S. Wheat to Rise 36%

online.wsj.com ^ | SCOTT KILMAN, ILAN BRAT And LIAM PLEVEN

[goldendays]

The drought decimating Russia's grain crop is helping put more money into the pockets of U.S. farmers and leaving the world more dependent on the U.S. harvest.

The U.S. Agriculture Department said Thursday it expects U.S. wheat exports to soar 36% amid higher prices, and in a rare move raised its one-month-old harvest forecasts and price forecasts for several major U.S. crops, including wheat, corn, and soybeans at the same time.

"The U.S. is an island of supply in a year of very big demand," said Daniel W. Basse, president of AgResource Co., a Chicago commodity forecasting concern. Higher prices for these commodities could end up driving up food prices for recession-weary consumers.

The USDA said that based on Aug. 1 conditions it expects U.S. farmers to harvest a record 13.4 billion bushels of corn in the next few months, up 1.9% from the record 2009 harvest, and yet reap $3.80 cents a bushel, give or take 30 cents. The $3.80 midpoint is 7% higher than last year. "Crop revenues look to be much improved with record crops and generally higher prices than we anticipated earlier this year," said Joseph Glauber, the USDA's chief economist. In the wake of the USDA's wheat export forecast, the wheat futures contract for September delivery at the Chicago Board of Trade jumped 18.25 cents a bushel Thursday to settle at $7.13 a bushel, up 56% from two months ago. While the USDA's report highlighted the opportunity for U.S. farmers to fill at least some of the gap created by problems elsewhere, it also means the global food supply—and prices—are even more vulnerable if U.S. crops encounter their own weather or other troubles. "The pressure is on us to produce this corn," said Peter Meyer, an agriculture products specialist at J.P. Morgan Chase.

[norraad]

"Let them eat cake."

[goldendays]

get that money out you are going to pay for this
Sara Lee lifts prices to deal with rising commodities
http://www.marketwatch.com/story/sara-lee-raises-prices-to-offset-commodity-costs-2010-08-12?reflink=MW_news_stmp

[Joe Boucher]

And how many wheat acres have been changed to corn for this ethonol program that pollutes and is subsidized by the gub mint?
Sooo cause russia is having a bad harvest I needs to spend more for MY wheat?
This gub mint sucks.

[J Edgar]

Pack in your food supplies while you can afford it. The price of food is about to take off, and once it does, it most likely will not come down soon. JMHO.

[Drango]

supply and demand is an interesting “law” but like gravity...it works.

[rednek]

finally ....1 bushel of wheat = 1 barrel of oil.....red

[goldendays]

Leon E. Panetta, the director of the Central Intelligence Agency, has said the new sanctions will have some impact, possibly weakening the regime and creating some serious economic problems. He put this in the context of what he described as an Iran already having enough enriched uranium for two nuclear weapons and the capability of building them in two years; Israel’s estimate of their deployment time is 12 months.

So when Mr. Panetta asked himself aloud in a television interview a couple of weeks ago whether the sanctions would deter Iran’s “ambitions with regard to nuclear capacity,” his answer came back with full clarity: “Probably not.”

[Daisyjane69]

Thanks for the posts. I’ve forwarded them to the usual suspects on my email list.

:)

[the invisib1e hand]

Joseph-bump. y’know, from the Old Testament.

[EGPWS]

The drought decimating Russia's grain crop is helping put more money into the pockets of U.S. farmers and leaving the world more dependent on the U.S. harvest.

F'em, we are strapped with saving the world from a nonexistent global warming and can't afford it right now....starve and we will let you know when we can help.

[Sybeck1]

Prologue/Opening Narration of Red Dawn: Soviet Union suffers worst wheat harvest in 55 years... Labor and food riots in Poland. Soviet troops invade... Cuba and Nicaragua reach troop strength goals of 500,000. El Salvador and Honduras fall... Greens Party gains control of West German Parliament. Demands withdrawal of nuclear weapons from European soil... Mexico plunged into revolution... NATO dissolves. United States stands alone.

[goldendays]

WASHINGTON (AP) -- Wholesale prices rose more than expected last month as food prices surged by the most in 26 years. But excluding food and energy, prices were nearly flat.

The Labor Department said the Producer Price Index rose by 0.7 percent in March, compared to analysts' forecasts of a 0.4 percent rise. A rise in gas prices also helped push up the index.

Still, there was little sign of budding inflation in the report. Excluding volatile food and energy costs, wholesale prices rose by 0.1 percent, matching analysts' expectations. Food prices jumped by 2.4 percent in March, the most since January 1984. Vegetable prices soared by more than 49 percent, the most in 15 years. A cold snap wiped out much of Florida's tomato and other vegetable crops at the beginning of this year.

Gasoline prices rose 2.1 percent, the department said, the fifth rise in six months.

In the past year, wholesale prices are up 6 percent, with much of that increase driven by higher oil and other commodity prices.

But the core index, which excludes food and energy, rose only 0.9 percent.

(sorry no raises Social Security the government hate you)

[TopQuark]

Are the FReepers that were raging against the oil companies going now to rage against the farmers who stand to make windfall profits? Or, are they going to rage against the "speculators" and Goldman Sacks who "manipulate" the prices?

[goldendays]

The Food and Agriculture Organization of the United Nations (FAO) is working with its Members and the entire international community for achievement of the Millennium Development Goals.

[and so?]

I've often said the US is the best in the world at growing stuff and in light of the exploding population growth worldwide we can make headway against the balance of payments if we don't waste opportunities when they occur.

Of course I'm discounting the eco-freaks and the EPA.

[Yo-Yo]

And yet the Federal Government is decimating some of our most productive farmland in California by denying it water - because of a 2 inch long fish.

[goldendays]

water

[SunkenCiv]

The drought decimating Russia's grain crop is helping put more money into the pockets of U.S. farmers and leaving the world more dependent on the U.S. harvest.

coming soon, Congress holds hearings to explore price gouging by U.S. farmers, who typically work more in one year than congresscritters do in entire careers. Thanks goldendays.

• The Bum Rap on Biofuels
• Campaign to vilify ethanol revealed

[goldendays]

check out world bank and water

[goldendays]

the government has kill U.S. farmer

[radioone]

We may get to long for the days during the Carter Admin when Dan Rather would report that prices “only rose by 1.5% this month”.

[citizenredstater9271]

This is why I am gluten free. Wheat is bad for you and causes food crisis. Imagine if everyone in the world threw away wheat and ate rice (no gluten) instead. This wouldn’t be happening.

[demsux]

But...but....but....I thought DEflation was coming?

[JmyBryan]

Yep, time to tax “Big Wheat”.

[panaxanax]

Investors are fearing another “Great Grain Robbery” of 1972 when Russian wheat crops failed. Russia ‘bought’ millions of metric tonnes of our wheat ON CREDIT claiming their people were starving, which they truly were. We Americans, being who we are, felt sympathy for the hungry people of the USSR and were glad to help.

Russian cargo ships crowded our ports and loaded our wheat to maximum capacity and then left for......France where they sold the wheat at incredible profits and their people starved.

Unfortunately, refined wheat products like cake mixes, ground flour, Bisquick etc. don’t have a long shelf life due to weavels. Just saying that everything with wheat as a main ingredient will rise in price at least 30% by winter.

Be prepared as best you can.

[J Edgar]

You Are 100% Correcto Mundo - thanks for the more detailed data and historical remembrance.

[Daisyjane69]

Don’t know if it’s true or not, but my sister told me a long time ago that if you put flour, baking mixes, etc. in the freezer for a couple of days, it kills the weevil eggs?

I might need to check out that theory on one of the prepper sites, to be sure.

[Daisyjane69]

http://insects.ippc.orst.edu/pnw/insects?29PUBH01.dat

http://www.ag.ndsu.edu/pubs/yf/home/e300w.htm

Looks like 4-7 days in the freezer will do the trick.

[Chode]

The drought decimating Russia's grain crop

decimating??? try devastating...

[panaxanax]

You are more than welcome. Our younger FReeper members need to know the facts. Us old-timers remember what really happened.

[Teacher317]

and with trillion-dollar deficits, we still pay farmers to NOT grow crops

[panaxanax]

Thanks. We’ll try that and I’ll also try spelling weevil correctly next time.

[Tolsti2]

If you mention that, you’ll get some hell from freepers (surely themselves or relatives that are in on the game).

[TopQuark]

"United States stands alone."

I wish. In that scenario, continue: mass exodus of Mexicans into the Southwestern states, Texas secedes...

[J Edgar]

“Our younger FReeper members need to know the facts. Us old-timers remember what really happened.”

So very true. I am so sorrowful for the betrayal that has befallen them. Robbed of legitimate education, appreciation of history, knowledge foundational Christian values, especially as they pertain to Our Republic's character and establishment, and inundated with perversity and crazed lifestyle heroes.

[rfreedom4u]

Tell Mexico that we can’t send them any because we are using it to feed the illegals that are here.

Tell the arabs that we will trade them one barrel of grain for one barrel of oil.

Tell the rest of the world it is a cash sale. No credit.

[Lazamataz]

"The U.S. is an island of supply in a year of very big demand," said Daniel W. Basse.

OH! Well! We better get Obama and Pelosi on that right away!

SOCIALIZE FARMS! Why should we eat when no one else can???!?! MARXISM IS THE ANSWER TO THIS HORRIBLE PROBLEM!

[Daisyjane69]

I knew what you meant! LOL Besides, I’m an OSU Master Gardener...we’re supposed to know bug names.

;)

[April Lexington]

Unfortunately, refined wheat products like cake mixes, ground flour, Bisquick etc. don’t have a long shelf life due to weavels. Just saying that everything with wheat as a main ingredient will rise in price at least 30% by winter.

Would this include Wheaties?

[TheOldLady]

Demand may rise, but with the farmers busy counting dust motes for their pollution tax, they may not have time to meet it.

[G8 Diplomat]

Russia’s province of Tatarstan is one of its major wheat producers. I read that their yeild was only 668,000 tons this year. It was 4.5 million last year.