Fundamental Wheat Supply Concerns

CHICAGO - Sep 5/07 - SNS -- International agriculture commodity markets maintained a busy tone, with importers not put off by recent gains in wheat prices, reflecting a fundamental worry about supply for the 2007-08 marketing year.

The USDA's weekly crop progress report showed this year's spring wheat harvest now stands at 96% complete, the same as last year.

Harvest progress in Canada is advancing at a slower pace, with Saskatchewan Agriculture and Food saying 32% of spring wheat; 60% of durum, 20% of oats, 42% of barley, 33% of canola, and 7% of the province's flax crop is now in the bin. Last year, Saskatchewan reported 59% of the spring wheat crop was harvested by the end of August, along with 75% of the durum, 42% of the oats, 64% of the barley, 53% of the canola and 19% of the flaxseed.

The USDA's crop progress report found 59% of the U.S. corn crop is rated good to excellent condition, unchanged from last week.

For soybeans, the USDA said the percent of crop rated good to excellent advanced one point to 56%, just ahead of the recent 10-year average of 54% for this time of year.

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