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Wheat price on the rise

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Wednesday, November 01, 2006

Trading bids in Portland for soft white wheat as well as hard red winter wheat and other varieties have been climbing during 2006, in part reflecting a tightening global supply. The price increase is likely to continue, as poor weather has devastated this year’s Australian crop, normally accounting for nearly 15% of world wheat production. Oregon’s average wheat price for all varieties has bested the U.S. price during the last five years, though the difference was slim in 2005, when the value of Oregon’s production fell 12%. Oregon wheat yields have also outperformed U.S. yields in recent years with Oregon production approaching the relatively high levels of 10 years ago after slumps in 1999, 2001 and 2002.
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