Global: Wheat rose 3.5-5.6% based on USDA’s crop status report

Published Jun 22, 2023

Tridge summary

A recent USDA report highlights the impact of drought on wheat conditions in the United States, with good or excellent conditions decreasing by 7% to 51%, the worst in five years. The drought is expected to result in a harvest, one of the worst in the last 50 years, estimated at 45.3 million tons, below the five-year average. The report also notes a decrease in harvest forecasts in Russia and Germany, and slow exports from Ukraine due to blockages. Meanwhile, China is becoming a potential major buyer of wheat in the 2022/23 season, with imports reaching 12.7 million tons in the current season.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to the NASS USDA report, as of June 18 in the United States due to a lack of moisture, the number of spring wheat crops in good or excellent condition for the week decreased by 7% to 51% (59% last year). Winter wheat is threshed on 15% of the area (23% last year, 20% on average for 5 years on this date). Due to the prolonged drought, the wheat harvest will be one of the worst in the last 50 years. In a June report, the USDA estimated it at 45.3 million tons, which would exceed the 44.9 million tons of the current non-harvest season, but be inferior to the 5-year average of 48.7 million tons. The pressure on prices was increased by a decrease in harvest forecasts in the Russian Federation and Germany. SovEkon experts reduced the estimate of the wheat harvest in the Russian Federation by 1.2 million tons from 88 to 86.8 million tons, barley – from 20.8 to 19.9 million tons, corn – from 14.8 to 14.6 million tons. Forecast the wheat harvest was revised due to the ...

Source: UkrAgroConsult