Agricultural price pressures ease?

With the deference due a non-specialist, I have the following take on what's important in yesterday's agricultural supply and demand reports:

U.S. wheat supply and use projections are mostly unchanged this month (November). The all wheat season-average farm price is projected at $6.55 to $7.15 per bushel, down on both ends of the range from last month's $6.60to $7.40 per bushel. Price prospects for the remainder of the marketing year are dampened by rising world supplies and continued declines in futures and cash prices.

Global 2008/09 wheat production is projected at a record 682.4million tons, up 2.2 million from last month. Increases for EU-27 and Russia more than offset reductions for Argentina,Australia, and China.

The November NASS Crop Production report lowers forecast U.S. corn production 13 million bushels. Corn exports, however, are lowered 50 million bushels reflecting slower export sales and shipments and increased foreign competition. Ending stocks are raised 36 million bushels. The season-average farm price is projected at $4.00 to $4.80 per bushel, down on each end of the range from the previous $4.25 to $5.25 per bushel. Declines in futures and cash prices continue to reduce projections for the 2008/09 season-average prices received by producers.

Rising world coarse grain supplies and reduced prospects for global feeding are also expected to dampen U.S. feed grain prices. The season-average farm price for sorghum is projected at $3.40 to $4.20 per bushel, down from $3.70 to $4.70 per bushel. Price projections are also lowered for barley and oats, but by lesser amounts. In addition, global coarse grain supplies are projected 5.6 million tons higher this month with beginning stocks raised 4.1 million tons and production raised 1.5 million tons.