Winter Wheat Production Down 3.7 Percent

With farmers planting 13 percent less acreage of wheat this year, the winter wheat production is projected to fall 3.7 percent, according to Informa Economics.

This year will bring in approximately 1.466 billion bushels of wheat, in comparison to the 1.523 billion bushels last year.

Yields should rise to about 46 bushels an acre from the 44.2 bushels an acres produced in 2009.

Harvests are up a little from estimates because of the increased bushels an acre. Spring and winter wheat should drop from 2.216 billion bushels in 2009 to 2.079 billion bushels this year, an increase from the 2.04 billion bushels estimated to come in.

Hard red winter wheat will rise over last year, bringing 964 million bushels, a gain from the 919 million produced last year.

Soft red winter wheat on the other hand will drop significantly from the 404 million bushels last year to 295 million bushels in 2010.

CBOT Limits Ag Receipts Held by Non-Grain Companies to Improve Performance of Hedging

In response to pressure over the last year, the CBOT has responded to requests from its regulator, the Commodity Futures Trading Commission, and will now limit the number of warehouse receipts and grain shipping certificates a non-grain company can hold.

This is especially targeted to soft red winter wheat contracts, to improve its hedging effectiveness, which has been dismal for some time. At the same time it'll help other grain contracts like corn, rice, wheat, oat, soybean, soymeal and soyoil.

Starting on February 17, the Chicago Board of Trade will enact the limits on the non-grain holding companies that hold grain shipping certificates or warehouse receipts, which will be given until May 31 to comply with the new rules.

Here are the parameters below:


Commodity - Limit


Corn shipping certificates - 600*
Soybean shipping certificates - 600*
Wheat shipping certificates - 600*
Soybean oil warehouse receipts - 540
Soybean meal shipping certificates - 720
Oat shipping certificates - 600
Rough rice warehouse receipts - 600

*Includes certificates for CBOT mini-contracts.