USDA pegged winter wheat production at 1.45 billion bushels, up 2 percent from the May forecast. But, USDA is projecting an eleven million bushel reduction for durum and other spring wheat production, as seedings were reduced by 290,000 acres based on flooding and persistent wet soils in North Dakota and Montana.
Analyst Charles Soule with Country Hedging says hope for getting a few more acres into the ground is quickly fading.
In fact, Soule thinks national spring wheat and durum acres could be reduced even further, by another million to 1.5 million acres compared to current projections.
Given the tight supply situation for high protein wheat, Soule says spring wheat prices should remain “pretty firm”.