Outlook for wheat prices bearish

BISMARCK (AP) — The federal Agriculture De-partment is projecting an average marketing year price for wheat of between $4.65 and $5.05 per bushel.

Market prices have dropped this fall because of an expected large wheat crop, increased competition overseas and a slackening in worldwide de-mand due in large part to the global recession.

John Sanow, an analyst with the Omaha, Neb.-based market information company DTN, said the wheat market “is looking more bearish every day.”

Jim Peterson, marketing director for the North Dakota Wheat Commission, said he doesn’t expect a big price rally as the marketing year goes on. But he said prices might rise some later as wheat supplies in the pipeline decrease and mills begin looking for more grain.

Peterson said steep price discounts for spring wheat with low protein also have eased somewhat, and farmers with higher-protein grain are seeing premiums.

Peterson said $5 wheat isn’t bad from a historical perspective anyway, though farmers’ production expenses have escalated.

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