Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News
All NewsCompaniesIndexesCurrency / ForexCommoditiesCryptocurrenciesETFInterest RatesEconomyThemesSectors 

U.S. wheat harvest falls below forecasts, prices jump 4.5%

09/30/2022 | 12:46pm EST

CHICAGO, Sept 30 (Reuters) - The 2022 U.S. wheat harvest was smaller than previously forecast as dry soils in western growing areas cut into yields and caused heavy crop abandonment, the government said on Friday.

Chicago Board of Trade wheat futures surged 4.5% to their highest since June 29 as traders adjusted positions to reflect the lowered production view.

"People all summer long, and really fall, have been saying the wheat crop was awful," said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage. "This is a confirmation of what everybody has been saying, but they didn't want to believe it was that bad."

The disappointing U.S. wheat crop, the second-smallest in the last 20 years, exacerbated worries about global grain inventories as harvests from other major crop producers also have come in lower than initially expected.

Wheat stocks remained slightly higher than a year ago, the U.S. Agriculture Department said, as high prices cut into demand for U.S. supplies. But the overall balance sheet was still tight at a time when export disruptions stemming from Russia's invasion of Ukraine have left buyers scrambling to find grain.

"I see (U.S. wheat) ending stocks dropping down below that 500 million bushel level and getting kind of snug, particularly for our quality milling wheat," said Arlan Suderman, chief commodities economist at brokerage StoneX.

In its annual Small Grains Summary report, USDA pegged the U.S. wheat crop at 1.650 billion bushels. That compares with market forecasts for 1.778 billion bushels, according to the average of analyst' estimates in a Reuters poll. The government had estimated wheat production of 1.783 billion bushels in August.

Domestic stocks of wheat stood at 1.776 billion bushels on Sept. 1, according to USDA's Quarterly Stocks report. That was up from 1.774 billion bushels a year earlier and in line with trade forecasts.

USDA said that wheat used during the quarter ended Sept. 1 was 543 million bushels, down 24% from a year earlier. (Additional reporting by Tom Polansek; Editing by David Gregorio)


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
CORN FUTURES (ZC) - CBE (ELECTRONIC)/C1 0.60% 667.25 End-of-day quote.12.60%
S&P GSCI GRAINS INDEX -0.96% 556.3816 Real-time Quote.9.33%
S&P GSCI WHEAT INDEX -1.47% 532.824 Real-time Quote.3.41%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) -1.90% 59.5 Delayed Quote.-19.47%
WHEAT FUTURES (ZW) - CBE (ELECTRONIC)/C1 -2.77% 771.5 End-of-day quote.0.62%
Latest news "Economy"
05:33pUK Prime Minister Sunak vows to maintain military aid to Ukraine
RE
05:19pUkraine sees less than 3 million tonnes of grain leaving in November - minister
RE
05:13pBBC says Chinese police assaulted journalist covering protest
RE
04:56pMarketmind: China crisis brewing
RE
04:48pMexican president says economy should grow at least 3.5% through 2024
RE
04:36pRussia planning new strikes, says Ukraine's Zelenskiy
RE
04:11pKyiv mayor trades verbal jabs with Ukraine president and allies
RE
03:32p25 Ukrainian soldiers hospitalised after bus crash in Latvia
RE
02:59pClashes in Shanghai as COVID protests flare
RE
02:43pCiti Mexico suitor Mifel enlists Apollo, ADIA to fund bid -sources
RE
Latest news "Economy"