Wheat futures went lower after the U.S. Dept. of Agriculture (USDA) released its July WASDE report on Friday, signaling larger supplies, exports, and ending stocks. The report was a bit of a shock to economists.
USDA forecasts winter wheat production to be up 4 percent from the previous forecast and 7 percent from last season. If realized, this would be the largest winter wheat crop since 2016.
USDA Chief Economist Seth Meyer believes that traders feel there are enough supplies, and that has sent prices lower; however, he says the data was surprising.
“I think that is the big surprise from the U.S. production side is the supply of the crop for wheat—across the board, larger than anticipated anyway,” Meyer said.
Wheat harvest is still happening, but key states could soon be wrapping up. The USDA’s next WASDE report is set to release on August 12, 2024.
