The wheat harvest 2022 in the United States was lower than previously anticipated, as dry soils in western growing areas reduced yields and led to heavy abandonment of crops. cropsaccording to the US government.
Chicago Stock Exchange wheat futures rose 4.5% to their highest since June 29 as traders adjusted their positions to reflect reduced production.
“Throughout the summer, and actually into the fall, people have been saying the wheat harvest was horrible. This is confirmation of what everyone has been saying, but they didn’t want to believe it was that bad,” said Tomm Pfitzenmaier, an analyst at Summit Commodity Brokerage.
The disappointing US wheat harvest, the second smallest in the last 20 years, exacerbated concerns about global grain inventories, as harvests from other major crop producers have also been lower than initially forecast.
Wheat stocks remained slightly above those of a year ago, according to the US Department of Agriculture, as high prices reduced demand for US supplies. However, the balance sheet remained tight at a time when export disruptions stemming from the Russian invasion of Ukraine have left buyers scrambling to find grain.
In its annual report on small grains, the USDA pegged the US wheat crop at 1.65 billion bushels. This figure matches market forecasts of 1.778 million bushels, according to the median of analyst estimates in a Reuters poll. The Government had estimated a wheat production of 1.783 million bushels in August.
National wheat stocks were 1.776 million bushels on September 1, according to the USDA’s quarterly stock report. This figure is higher than the 1,774 million bushels of the previous year and is in line with commercial forecasts.