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Rising Wheat prices draw attentionABERDEEN, S.D. (AP)--Dwindling supplies have spurred higher prices for Wheat and the likelihood that more Wheat will be planted in South Dakota, according to an agriculture expert. Wheat prices of $4 a bushel aren't very common, said Alan May, marketing specialist for the South Dakota State University Cooperative Extension Service. But the cash price has been more than $4 in recent weeks, and contract prices for Wheat that would be delivered next year have been higher than $4.50, May said. The chance for profit may mean more winter Wheat or spring Wheat is planted. Wheat prices are high because in the past few years domestic and worldwide supplies have dwindled, May said. This year's drought also played a role. During the winter Wheat growing season, prices were 50 to 80 cents a bushel higher than they are now, May said. When this year's crop was harvested, prices dipped a bit because supply went up. There's no way to know for sure, but May said he expects farmers who already grow Wheat will plant more, and those who have grown other crops might plant some wheat. One drawback to winter Wheat in northeast South Dakota is insurance. Except in the southwestern part of the state, crop insurance for winter Wheat can't be purchased until spring because of the risk of there being no crop. Severe winters or late spring frosts are concerns, May said. Spring Wheat can be insured as it's planted, lowering the risk of crop loss to producers. Still, May said, some farmers don't like locking into a contract so early. An Aug. 1 survey by the National Agricultural Statistics Service said hot, dry weather would be the prime reason for a 43 percent reduction in South Dakota's winter Wheat production and an 18 percent drop in spring Wheat production this year. Date: 9/22/06
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