Wet weather holds back US winter wheat harvest

By Joanna Newman

WET field conditions are hindering US farmers from harvesting their winter wheat crop.

Over the past week, producers have managed to gather only another 7% of their wheat, bringing the total to a mere 17% of the harvest, according to the US Department of Agriculture.

This is well behind the 32% gathered at this time last year and the 22% average for the time of year.

Short-term forecasts of wet weather will prevent the fields from drying out and could push wheat futures prices higher if there are signs of further crop damage.

There are ongoing concerns about the quality and protein content of hard red winter wheat.

These factors are almost certain to tighten up the supply of winter wheat.

However, analysts point out that the US market is so oversupplied that prices are unlikely to rally strongly from current levels unless there is a drought that would damage the newly-planted spring wheat crop.

The Chicago July futures contract settled on Tuesday (22 June), at 250.3¢/bushel, down from 259.0¢/bushel a week earlier.

It is unlikely that there will be a demand-driven recovery in this depressed market.

Feedlots have already covered most of their cattle feed needs with maize and there is little requirement for wheat in livestock rations.

A lack of bin space for wheat due to high inventory levels could force producers to sell off wheat cheaply.