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US spring wheat harvest sluggish; winter wheat planting picks up pace in latest week

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US spring wheat harvest sluggish; winter wheat planting picks up pace in latest week

New Delhi — The US spring wheat harvest for the 2019-2020 (June-May) crop reached 87% in the week to September 22, led by slower harvests in Montana and North Dakota, latest data from the US Department of Agriculture showed.

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The estimate for harvest progress during the week ended September 22 was above market expectations of 83%, but below the year-ago pace of 99% and the five-year average of 97%, the data released late Monday showed.

The spring wheat harvest in North Dakota is continuing at a slower-than-usual pace, reaching 85% in the week ended September 22, down from 99% in the same period a year earlier, according to a separate report released by the USDA's National Agricultural Statistics Service.

North Dakota is expected to produce 8.7 million mt of spring wheat in 2019-2020, the largest volume of any US state.

Spring wheat harvest in Montana was seen trailing at 80%, compared with 97% a year ago, the NASS data showed.

Montana is expected to produce 2.3 million mt of spring wheat in 2019-2020, the USDA earlier said in its crop production report.

WINTER WHEAT PLANTING

Winter wheat planting for the 2020 crop season in the key states reached 22% in the week to September 22, up from 8% a week ago. The 2020 wheat crop season will begin June 1, 2020.

The latest week estimates for winter wheat planting were above the market expectations of 18%.

A good pace of planting progress was seen in Nebraska and Colorado, while planting is seen trailing sharply in South Dakota, according to the USDA data.

The most-active hard red spring wheat futures on the Minneapolis Grain Exchange rose from the last close of $5.30 per bushel to reach $5.38/bu midsession Tuesday.

Markets were reacting to wet weather conditions seen in North Dakota and southern Canada that could impact quality of spring wheat crops, according to sources.

However, the most-active winter wheat contracts, traded on the Chicago Board of Trade and Kansas City Board of Trade, both drifted lower during the intra-day session Tuesday.

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

-- Edited by Nurul Darni, nurul.indriani.darni@spglobal.com