US weekly wheat inspections drop 53.4% on week to hit second-lowest level in 2020-21: USDA

New Delhi — US wheat inspections in the week ended Oct. 15 plunged 53.4% on the week to reach its second-lowest level of the 2020-21 marketing season, mostly on smaller-than-expected volumes heading to major destinations, US Department of Agriculture data showed Oct. 19.

US wheat inspections for global destinations were seen at 239,688 mt in the week to Oct. 15, compared with 514,649 mt in the prior week, according to USDA data.

The most notable omission from the inspection lineup in the latest week was China, following exports recorded for six consecutive weeks totaling 649,152 mt, according to an analysis of the USDA data.

China's export volume already accounts for 42% of its total commitments for US wheat in the 2020-21 marketing season. The US wheat marketing year started June 1 and ends May 31, 2021.

No shipments were seen heading to the Philippines, the top buyer of US wheat in the 2020-21 season, while smaller volumes were inspected for destinations like Mexico and Japan, which are typically large traditional buyers.

Ethiopia emerged as the top destination for US wheat in the week ended Oct. 15, with wheat inspections seen at 64,180 mt.

Since the start of the 2020-21 marketing year through Oct. 15, total wheat inspected for exports for global destinations reached 10.7 million mt, up 5.8% from the year before, according to the data.

USDA estimates the US will export 26.5 million mt of wheat in the 2020-21 season. In its latest World Agricultural Supply and Demand Estimates report, the agency kept US export estimates unchanged from the previous estimate.

Inspection for export indicates the loading of a sold commodity onto ships that are set to leave US ports during a given week.

Source: USDA