US farmers harvested their second-smallest wheat crop in 20 years amid drought in Plains, delaying the restoring of grain flowers disrupted by the Russia-Ukraine war.
Last Friday, the Department of Agriculture projected that the wheat output would total to 1.65 billion-bushel, which is a 7.50% decline from its previous estimate and only 3.60 bushels higher compared to 2021.
Meanwhile, Ukraine exported around 4.30 million metric tons of grain in September, up from 3.00 million metric tons in August. It is the nation’s largest monthly total since the Russian invasion began in February.
Before the war, grain shipments were much larger, with 17.00 million metric tons of wheat alone in the 2020/21 season. The two eastern European warring countries are the world’s largest suppliers of wheat, accounting for 40.00% of global supply.
Hence, the Biden administration has urged farmers to expand grain production to cushion the impact of what Russia called a special military operation.
Due to this, US farmers have been very particular in growing more winter wheat, which is the nation’s major variety. This type of grain is planted during the autumn season, lies dominant during winter and is harvested the following spring and summer. It accounts for as much as three-fourths of the country’s output.
USDA Wheat Forecast
The USDA forecasted that the 2022 and 2021 wheat crops would be the smallest since the 1.61 billion bushels record in 2002. From 2012 to 2021, wheat production averaged 1.99 billion bushels annually.
Alongside wheat estimates, the department also showed in its quarterly Grain Stocks report that the soybean stockpile was larger and the corn stockpile was smaller than traders had anticipated.
Last month, the USDA estimated that this year’s wheat harvest would sell for an average of $9.00 a bushel, which is the highest season-average price in history.
Besides, it forecasted that soybeans would average a near-record $14.35 a bushel, and that corn would reach $6.75, which is its second-highest season-average price.
