Between $4.65 and $5.05 per bushel
The federal Agriculture Department is projecting an average marketing year price for wheat of between $4.65 and $5.05 per bushel.
BISMARCK, NORTH DAKOTA (AP) -- Market prices have dropped this fall because of an expected large wheat crop, increased competition overseas and a slackening in worldwide demand due in large part to the global recession.
John Sanow, an analyst with the Omaha, Neb.-based market information company DTN, says the wheat market "is looking more bearish every day."
Jim Peterson, marketing director for the North Dakota Wheat Commission, says he doesn't expect a big price rally as the marketing year goes on. But he says prices might rise some later as wheat supplies in the pipeline decrease and mills begin looking for more grain.
Peterson says steep price discounts for spring wheat with low protein also have eased somewhat, and farmers with higher-protein grain are seeing premiums.
Peterson says $5 wheat isn't bad from a historical perspective anyway, though farmers' production expenses have escalated.
(Copyright ©2009 by The Associated Press. All Rights Reserved.)
