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US winter wheat harvest sees slow start amid wet weather conditions

New Delhi — Harvesting for the winter wheat 2019-2020 crop (June-May) reached 4% in the US in the week ended June 9, down 9 percentage points year on year, mostly on the back of severe weather conditions seen in the key wheat-producing state of Oklahoma, latest data from the US Department of Agriculture showed.

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Wheat in Oklahoma was already planted in a smaller area than in the last marketing season. For the week ended June 9, winter wheat harvesting in the state was down 39 percentage points from the past year, at 4%, the USDA report showed.

The state saw major rainfall in May and the adverse weather condition is expected to continue at least for the next week, which could delay harvesting of Hard Red Winter wheat, according to market analysts.

Kansas, the biggest winter wheat producing state in the US, is also facing wet soil conditions, which has increased concerns of yield loss, according to the US Wheat Associates. Harvest in Kansas has yet to start.

USW looks into developing and expanding global markets for US wheat producers.

Winter wheat is headed 83% in the key producing states, up from 76% a week ago. Wheat headed in South Dakota and Michigan continued to trail in the latest week from the five-year average range, reaching just 23% and 35%, respectively.

Heading occurs when the head of the wheat plant fully emerges from the stem.

A total of 64% of winter wheat across key producing regions was reported to be in good and excellent condition, unchanged from the previous week, and in line with market expectations of 62%-65%. USDA said 9% of the overall wheat remains in poor or very poor conditions.

The most-active CBOT wheat contract traded at $5.01/bushel as of June 11.

SPRING WHEAT

Spring wheat planting reached 97% in major producing states, up 4 percentage points from the past week, but still 2 percentage points down from the five-year average.

Trade estimates for the spring wheat planting progress was in the range of 95%-99%.

A total of 81% of spring wheat crop across the key states was reported in good and excellent conditions, down from 83% reported in the past week. Trade expectations were in the range of 80%-85%.

-- Rohan Somwanshi, rohan.somwanshi@spglobal.com

-- Edited by Norazlina Jumaat, newsdesk@spglobal.com

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