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Wheat commodity info
CommodityTradingManual.Com
Presentation about state of wheat market between
2004 - 2003.
● On August 12th, the USDA increased its
estimate of the 2004-2005 U.S. ending
stocks from 494 to 578 million bushels, up
from 546 million bushels in the previous
year.
● Production in the new season is expected to
total 2.12 billion bushels with total use of
2.15 billion bushels. The resulting ending
stocks to use ratio is 27%, the most in three
years.
● Worldwide, the USDA is expecting 2004-2005
ending stocks to increase from 132 to 142
million tons, or 24% of annual use. 609 million
tons of world production is expected to cover
599 million tons of total use. The USDA expects
2004-2005 exports to drop 18%, but so far they
are up 7%.
● Overall, wheat is a chronic bear market and (I
don't like to say it, but) wheat farming has a
bleak future. Wheat (like sugar) is grown on
every continent, but Antarctica.
● Farm productivity continues to increase, but
consumption is not growing. If not for
occasional weather problems, wheat prices
would trend endlessly lower.
● On October 3, 2003, the U.S. Department of
Commerce said that they will allow a 14%
import tariff on hard red spring wheat that
comes from Canada, but not on durum wheat.
As of August 15th, 66% of the spring wheat
crop was rated good to excellent, up from 53%
a year ago.
● "I really think this crop is getting hammered out
there even beyond what people are thinking,"
said Meteorlogix forecaster Mike Palmerino.
Reuters. May 19, 2004.
Wheat production table
2003 - 2004
Production Est.
MMT % of World
Euro 91 16%
China 86 16%
India 69 12%
World 552 100%
● More info about commodity trading at
Commoditytradingmanual.com
● More news from commodity markets can be
found at Finzine.com

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Brief information about wheat commodity market

  • 1. Wheat commodity info CommodityTradingManual.Com Presentation about state of wheat market between 2004 - 2003.
  • 2. ● On August 12th, the USDA increased its estimate of the 2004-2005 U.S. ending stocks from 494 to 578 million bushels, up from 546 million bushels in the previous year. ● Production in the new season is expected to total 2.12 billion bushels with total use of 2.15 billion bushels. The resulting ending stocks to use ratio is 27%, the most in three years.
  • 3. ● Worldwide, the USDA is expecting 2004-2005 ending stocks to increase from 132 to 142 million tons, or 24% of annual use. 609 million tons of world production is expected to cover 599 million tons of total use. The USDA expects 2004-2005 exports to drop 18%, but so far they are up 7%.
  • 4. ● Overall, wheat is a chronic bear market and (I don't like to say it, but) wheat farming has a bleak future. Wheat (like sugar) is grown on every continent, but Antarctica. ● Farm productivity continues to increase, but consumption is not growing. If not for occasional weather problems, wheat prices would trend endlessly lower.
  • 5. ● On October 3, 2003, the U.S. Department of Commerce said that they will allow a 14% import tariff on hard red spring wheat that comes from Canada, but not on durum wheat. As of August 15th, 66% of the spring wheat crop was rated good to excellent, up from 53% a year ago.
  • 6. ● "I really think this crop is getting hammered out there even beyond what people are thinking," said Meteorlogix forecaster Mike Palmerino. Reuters. May 19, 2004.
  • 7. Wheat production table 2003 - 2004 Production Est. MMT % of World Euro 91 16% China 86 16% India 69 12% World 552 100%
  • 8. ● More info about commodity trading at Commoditytradingmanual.com ● More news from commodity markets can be found at Finzine.com