“The Dec. 1, 2012, inventory of U.S. wheat was reported at 1.66 billion bushels, slightly smaller than the average guess,” Good said. “Feed and residual use of wheat during the first half of the marketing year was about 220 million bushels larger than use during the same period last year, prompting the USDA to raise the forecast for the year by 35 million bushels and to lower the projection of year-ending stocks by a similar amount. The projection of the marketing-year average farm price was lowered by $0.05 per bushel in recognition that much of the 2012 crop has already been sold.
Good said that winter wheat seeded for harvest in 2013 is estimated at 41.82 million acres, 496,000 more than were seeded for harvest in 2012. The increase was smaller than expected, with area seeded to soft red wheat up 16 percent and area seeded to hard red and white wheat down about 2 percent.
“Taken together, the information in last Friday’s reports may provide some short-term support for old-crop corn prices and for wheat prices,” Good said. “With such large crop prospects in
South America and the likelihood of a large rebound in U.S. corn and soybean production in 2013, new-crop corn and soybean prices may remain under pressure,” he said.