Wheat Higher After USDA Cuts Production and Yield Forecasts
Wheat for September delivery rose 4.2% to $6.40 3/4 a bushel, on the Chicago Board of Trade Monday, in reaction to the USDA reporting lower estimates for 2021 crop yields and production than expected by analysts.
Wheat futures on the CBOT charged higher following the release of the USDA's WASDE report -- which showed lower yields and crop production than initially anticipated. The USDA now forecasts 2021 crop yields at 45.8 bushels per acre, down from 50.7 bushels per acre projected last month. Production is now expected to total 1.75 billion bushels, down from 1.9 billion bushels last month. Analysts surveyed by The Wall Street Journal had expected production to rise. "The production forecasts for durum and other spring wheat indicated a significant decline compared to last year for these two classes due to the severe drought conditions affecting the Northern Plains," said the USDA in today's report.