Tour Through Wheat-growing States Shows Signs of Trouble ST. LOUIS, May 8 /PRNewswire-FirstCall/ -- After recently completing his sixth annual tour across the principal wheat-growing areas of Oklahoma, Texas, Kansas and Nebraska, A.G. Edwards grain analyst Bill Nelson is predicting one of the worst winter wheat crops in the past ten years. Because of extensive drought conditions and fires, Nelson observed especially poor crop conditions in Oklahoma and Texas. Nelson's findings served to validate USDA figures from early April that rated only 10 percent of the wheat crop in the two states at "good to excellent," a figure that is worse than comparable estimates in each of the past five years. Based on the findings from his trip, Nelson's forecasted production level of 570 million bushels for the four-state region would be the lowest total for that region since 2002, and only the third time since 1996 that its combined wheat production has totaled less than 600 million bushels. "It's safe to say that winter wheat is not off to a good start, and this is definitely something the market is going to be concerned with as we move into the production season for other areas of the country," Nelson said, noting that wheat prices are up nearly 30 percent in some markets. "Wheat prices are already elevated, and any significant events we encounter through the rest of the growing season -- such as the conditions we have seen so far -- could have a ripple effect that consumers would eventually see, because of the many foodstuffs that rely on the wheat supply." While Nelson cautions that there is still plenty of time left in the growing season and unpredictable weather patterns can play a key role in the final production numbers, the difficulties with the winter wheat crop could eventually translate into mild price increases that would actually affect consumers directly. "Good wheat production in other regions, such as the northern Plains, may be able to make up for some of the losses we're seeing now," Nelson said, "but if we have any problems in other areas later this summer, the combined effect could cause supply shortages and weigh heavily on the markets." During the second week of April, Nelson set out from Oklahoma City on an expedition through the major wheat production areas of the four-state region to get a first-hand view of current crop conditions. Covering over 1,300 miles in four days, Nelson made numerous observations while passing through the area and also ventured out into the fields on foot to record important measurements and closely examine the overall status of the winter wheat crops in this area. In addition to the annual spring wheat tour, Nelson also embarks each year on a summer crop tour through eight Midwest states to gauge the production levels for corn and soybeans, releasing his predictions in advance of USDA figures for the same crops. This year's wheat production count from the USDA is due out May 12. About A.G. Edwards Drawn to the firm's client-first philosophy, individuals and businesses have turned to A.G. Edwards & Sons, Inc. for sound advice and access to a wide array of investment products and services that can help them meet their financial goals and objectives. Founded in 1887, A.G. Edwards and its affiliates employ nearly 7,000 financial consultants in more than 700 offices nationwide and two European locations in London and Geneva. More information can be found on http://www.agedwards.com/ . How we do business A.G. Edwards generally acts as a broker-dealer, but may act as an investment advisor on designated accounts, and the firm's obligations will vary with the role it plays. When working with clients the firm generally acts as a broker-dealer unless specifically indicated in writing. To better understand the differences between brokerage and advisory services, please consult "Important Information About Your Relationship With A.G. Edwards" on http://www.agedwards.com/disclosures . A.G. Edwards & Sons, Inc. Member SIPC DATASOURCE: A.G. Edwards CONTACT: Byron Goodrich of A.G. Edwards, +1-314-955-3235, Web site: http://www.agedwards.com/

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