Ag Trade Focussed on USDA Reports

CHICAGO - Jun 8/06 - SNS -- International agricultural commodity markets remain relatively busy, with Japan confirming purchases on its weekly import tender and Tunis buying 125,000 metric tons (MT) of central or western European wheat for nearby shipment.

Surveys of traders reveal they expect tomorrow's USDA crop report to peg winter wheat production between 1,270 and 1,330 million bushels, with the average guess being 1,298 million bushels, down from May's 1,323 million bushel forecast. Hard red wheat production is expected to fall while soft red might increase some.

Total wheat production is expected to range between 1,827 and 1,924 million bushels, with the average prediction being 1,863 million bushels, down from the USDA's May forecast of a 1,873 million bushel crop.

Traders do not expect the USDA to change its corn crop production forecasts in the supply and demand updates it releases tomorrow. However, there is an expectation the USDA will reduce this summer's ending stock forecast to around 2,192 million bushels, down 35 million.

Next year's ending stock is expected to range between 1,074 and 1,226 million bushels, with the average trade guess on a Reuters survey coming in at 1,137 million bushels, down from last month's 1,141 million bushels USDA forecast.

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