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U.S. wheat futures fell to their lowest level in three years on Friday after the Agriculture Department reported higher domestic production and larger stocks than analysts expected.
In its Quarterly Summary of Grain and Small Grains stocks, the USDA estimated the country’s wheat crop to 1.81 billion bushels, 78 million bushels higher than a previous estimate and well above consensus forecast of 1.73 billion bushels in a Reuters poll.
The USDA said U.S. wheat stocks as of Sept. 1 totaled 1.78 billion bushels, while analysts expected wheat stocks to hit a 16-year low of 1.772 million bushels.
The report also said soybean stocks totaled 268.2 million bushels, their lowest level in two years but above analysts’ forecasts, while corn stocks were 1.36 billion bushels, less than the expected.
CBOT (W_1:COM) wheat delivery completed for December -6.6% to $5.40 3/4 per bushel, hitting the lowest level since September 2020 and extending wheat’s fourth consecutive quarterly decline, the longest decline in 14 years, while December corn (C_1:COM) closed -2.4% to $4.76 3/4 per bushel and November soybeans (S_1:COM) sold off -2% at $12.74 3/4 per bushel.
ETF: (NYSEARCA:WEAT), (CORN), (SOYBEANS), (DBA), (MOO)
Analysts said the approaching US government shutdown added to the pressure; If the government shuts down, the WASDE report scheduled for release on October 12 may not be released, depriving traders of critical crop data.
