USDA cuts forecast for U.S. wheat exports to lowest in over 50 years

The U.S. Department of Agriculture lowered its 2022/2023 outlook for U.S. wheat exports by 50 million bushels to 775 million bushels, according to a report released Wednesday. That would be the lowest amount of domestic wheat exports since the 1971/1972 marketing year, the government agency said.

The USDA cited “reduced supplies, slow pace of export sales, and continued uncompetitive U.S. export prices,” for the lower export forecast. U.S. wheat is “not competitive in world markets and has not been for quite some time,” said Sal Gilbertie, president and chief investment officer at Teucrium Trading, so it’s “no surprise that wheat exports are down.”

The USDA also cut expectations for U.S. wheat ending stocks by 34 million to 576 million bushels, which would be the lowest since the 2007/2008 marketing year. The report was fundamentally supportive for wheat overall, but the market had expected even lower stocks, said Gilbertie.

December wheat was down 12 cents, or 1.3%, at $8.89 a bushel. Prices had settled Monday at $9.38, the highest finish for a most-active contract since June 23, according to Dow Jones Market Data.

Tags: USDA Report, wheat, USA