excalibur
Diamond Member
- Mar 19, 2015
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The area where much of the wheat is grown is also known for cyclical dry conditions.
No real serious dry condition has occurred in several decades, but it looks as if we are in one now.
No real serious dry condition has occurred in several decades, but it looks as if we are in one now.
Wheat futures on the Chicago Board of Trade surged Tuesday after the U.S. Department of Agriculture lowered its outlook for domestic wheat production in 2026, amid persistent dryness in some key U.S. growing areas.
The USDA said in its monthly World Agricultural Supply and Demand Estimates report that it projects 1.56B bushels of wheat to be produced in the U.S. this year, a larger cut than expected and down from last year, when the USDA projected production of 1.98B bushels.
Underpinning the cut was a significant reduction in the size of the U.S. winter wheat crop, which is now forecast at 1.05B bushels, down ~350M bushels from last year and 100M lower than forecast by surveyed analysts.
"The USDA shocked the trade with that huge reduction in winter wheat production," Midwest Market Solutions President Brian Hoops told The Wall Street Journal. "This was the largest cut in production from the April to May report in history."
Drought conditions in the western plains are getting worse, with the USDA's Crop Progress report published Monday saying only 28% of the winter wheat crop is in good or excellent condition, down from 31% a week earlier.
The USDA forecasts 16B bushels of corn and 4.44B bushels of soybeans will be grown this year, in line with market expectations.
The agency also reduced its outlook for world wheat production to 275M metric tons for the 2026-27 marketing year, also lower than expected.
...
The USDA said in its monthly World Agricultural Supply and Demand Estimates report that it projects 1.56B bushels of wheat to be produced in the U.S. this year, a larger cut than expected and down from last year, when the USDA projected production of 1.98B bushels.
Underpinning the cut was a significant reduction in the size of the U.S. winter wheat crop, which is now forecast at 1.05B bushels, down ~350M bushels from last year and 100M lower than forecast by surveyed analysts.
"The USDA shocked the trade with that huge reduction in winter wheat production," Midwest Market Solutions President Brian Hoops told The Wall Street Journal. "This was the largest cut in production from the April to May report in history."
Drought conditions in the western plains are getting worse, with the USDA's Crop Progress report published Monday saying only 28% of the winter wheat crop is in good or excellent condition, down from 31% a week earlier.
The USDA forecasts 16B bushels of corn and 4.44B bushels of soybeans will be grown this year, in line with market expectations.
The agency also reduced its outlook for world wheat production to 275M metric tons for the 2026-27 marketing year, also lower than expected.
...
