USDA:2017/18 Wheat Area Planted, Harvest Unrevised In Aug Est>

By Kevin Kastner

     WASHINGTON (MNI) - The USDA's monthly WASDE report showed that 

wheat area planted for 2017/18 was unrevised at 45.7 million acres, 

while area harvested was also unrevised, holding at 38.1 million acres, 

both below the levels in 2016/17, according to data released Thursday. 

     Wheat production is estimated to be 1.739 billion bushels in 

2017/18, a downward revision from the previous estimate of 1.760 billion 

and down significantly from the 2.310 billion bushel production estimate 

for 2016/17. The USDA estimated yield per acre for wheat at 45.6 bushels 

for 2017/18, a downward adjustment from the 46.2 bushels in the previous 

estimate and well below the 52.6 bushels per acre in 2016/17. 

     Imports of wheat are expected to be stronger in the coming year, 

with 150 million bushels expected in 2017/18, an upward adjustment from 

140 million bushels in the previous estimate and well ahead of the 118 

million bushels imported in 2016/17. 

     Still, the supply of wheat is expected to be well below 2016/17 

levels, even with a stronger starting point in the year from beginning 

stocks. The USDA sees total wheat supply for 2017/18 at 3.074 billion 

bushels, down from 3.084 billion in the previous estimate and down 

sharply from 3.403 billion in 2016/17. 

     On the demand side, domestic use is seen at 1.166 billion bushels 

for 2017/18, revised down from 1.171 billion in the previous estimate, 

but still up very slightly from 1.164 billion bushels in 2016/17. The 

projection for wheat exports is for 975 million bushels for 2017/18, 

unrevised from the previous estimate, but down from 1.055 billion 

bushels in 2016/17. As a result, total use is expected to fall to 2.141 

billion bushels in 2017/18 from 2.219 billion bushels in 2016/17. Total 

use was previously estimated at 2.146 billion bushels for 2017/18. 

     Taken together, the downward adjustment in supply was larger than 

the downward revision to demand, so stocks are expected to be at 933 

million bushels at the end of 2017/18, a downward revision from the 938 

million previous estimate and down sharply from 1.184 billion at the end 

of 2016/17. 

     The 2017/18 average price per bushel of wheat is seen at 

$4.40-$5.20, that same as in the previous estimate. The average price 

was $3.89 in 2016/17. 

     Separately, the corn area harvested projection for 2017/18 was 

unrevised at 83.5 million acres, still down from 86.7 million acres in 

2016/17. The estimate for total corn supply is 16.573 billion bushels in 

2017/18, revised down from 16.675 billion bushels in the previous 

estimate and well below the 16.940 billion bushels estimated for 

2016/17. 

     The soybean area harvested projection was unrevised at 88.7 

billion, up significantly from 82.7 million acres in 2016/17. The 

estimate for total soybean supply now stands at 4.777 billion bushels, 

up from 4.695 billion bushels in the previous estimate and well above 

the 4.528 billion bushels in 2016/17. 

     ** MNI Washington Bureau (202) 371-2121 ** 

[TOPICS: M$U$$$,MAUDS$]