A drought in Russia and reduced global wheat production along with shifts in U.S. crop production affect the entire U.S. agricultural outlook. Changes in one sector ripple through all farm segments.
A mid-year update of the 2010 U.S. agricultural baseline shows increased wheat exports, moderate rises in grain prices and modest recovery in meat and dairy prices paid to farmers.
The baseline revision comes following release of new USDA data, said Scott Gerlt, crop analyst with the University of Missouri Food and Agricultural Policy Research Institute (MU FAPRI).
"Russia and neighboring countries have lowered production estimates and banned exports,” Gerlt said. “That comes at a time of large U.S. domestic wheat stocks. The U.S. exports should increase to fill part of the gap in world mark."
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