U.S. wheat stocks could fall to a 16-year low

The U.S. Department of Agriculture’s weekly crop progress report rated 31% of the U.S. winter wheat crop in good to excellent condition, up 2 percentage points from a week earlier and above an average of analysts’ expectations.

However, in Kansas, the top U.S. winter wheat producer, only 10% of the crop was rated good to excellent, unchanged from the prior week, and 69% of the state’s wheat was rated poor to very poor, up from 68% the week prior. Kansas has struggled with a three-year drought, forcing farmers in the hardest-hit areas to abandon their crops. US/WHE

The USDA has projected wheat stockpiles in the United States, the world’s No. 5 wheat exporter, will fall to a 16-year low by the end of the 2023/24 marketing year.

The U.S. corn crop was 81% planted as of Sunday, just below an average of analyst expectations but ahead of the five-year average of 75%. The USDA said it expects to release its first condition ratings for the 2023 corn crop in next week’s progress report.

For soybeans, planting was 66% complete, in line with trade expectations and ahead of the five-year average of 52%. The USDA has projected record-large U.S. corn and soybean production this year.

Planting progress for spring wheat rose to 64%, up from 40% a week earlier and ahead of the average analyst estimate, but still behind the five-year average of 73%.

Tags: wheat, USA