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U.S. wheat futures fell Wednesday after the U.S. Department of Agriculture cut its 2022-23 outlook for U.S. wheat exports by 50M bushels to 775M bushels, which would be the lowest amount of domestic wheat exports since the 1971-1972 marketing year.
The USDA cited “reduced supplies, slow pace of export sales, and continued uncompetitive U.S. export prices” for the lower export forecast.
In its monthly WASDE report, the government also cut expectations for U.S. wheat ending stocks by 34M bushels to 576M bushels, which would be the lowest since the 2007-08 marketing year.
“The reason why this report was bearish against expectations is due to the USDA reducing feed demand and exports more than expected,” Craig Turner of Daniels Trading said.
Chicago wheat (W_1:COM) for December delivery closed -1.9% to $8.87 1/2 per bushel, while November soybeans (S_1:COM) ended +1.4% to $13.96 3/4 per bushel and December corn (C_1:COM) finished flat at $6.93 3/4.
ETFs: (NYSEARCA:WEAT), (SOYB), (CORN), (DBO), (MOO)
Soybean futures rose after the USDA unexpectedly cut its U.S. harvest forecast and raised imports by top soy buyer China.
The USDA’s Crop Progress report released Tuesday showed harvesting in the U.S. was ramping up, with the corn harvest now 31% complete compared to a five-year average of 30%, and the soybean harvest 44% complete vs. the five-year average of 38%.
An uptick in crop conditions suggests farmers are finding better than expected yields in the course of harvesting, AgResource said.
