Chicago | Reuters – The U.S. Department of Agriculture cut its forecasts for Russian wheat production and exports on Wednesday, after Moscow declared federal emergencies over crop losses due to unfavourable weather.
Increasing concerns about damage from drought and frosts in Russia, the world’s biggest wheat supplier, drove Chicago board of Trade wheat futures to 10-month highs in May while EU wheat topped one-year highs.
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CBOT wheat Wv1 pared losses after the USDA reduced its estimates in a monthly report.
The USDA pegged Russia’s 2024-25 wheat harvest at 83 million metric tons, down from 88 million tons last month, and its exports at 48 million tons, down from 52 million in May.
“Hot and dry weather lowered yield prospects following May frosts,” the USDA said.
The department projected global wheat ending stocks for 2024-25 at a nine-year low of 252.27 million metric tons, down from 253.61 million in May. Analysts expected 251.18 million, according to a Reuters survey.
May frosts in Russia’s breadbasket regions already caused agricultural consultancies IKAR and Sovecon to downgrade their crop forecasts for this year’s wheat crop.
For the United States, the USDA projected all-wheat production at 1.875 billion bushels, compared to 1.858 billion in May and analysts’ estimates for 1.88 billion.
