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Winter Wheat Crop Tours Worrisome
CHICAGO - May 5/06 - SNS -- Agricultural commodity markets are finishing off the week on a relatively quiet note, with little fresh business reported overnight.
Markets were a little distressed by initial reports from winter wheat crop tours in Kansas and Oklahoma, with both coming back with smaller than expected crop forecasts.
The Kansas winter wheat crop tour pegged production for the state at 319.2 million bushels, down from the tour's forecast last year at 419.76 million bushels and an actual amount of 380 million year.
"The market seems to have expected production between 320 and 360 million bushels, so the new estimate is considered supportive," note analysts at the Chicago Board of Trade (CBOT).
"Tour participants indicated significant freeze damage and an abandonment of near 20% of the acreage. The Oklahoma Grain and Feed annual tour indicated that 45% of the crop will be abandoned and that the crop may be down 48% from last year to the lowest level since 1957."
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