US Wheat: Stocks Up, Plantings Up, Harvest In Full Swing

US wheat had a long-overdue bad day at the office yesterday with most active Sept08 closing 53 1/4c lower, just shy of it's session low of 56c easier.

Unsurprisingly the USDA report showed U.S. growers seeded more acres with spring crops to take advantage of prices that rallied to a record this year.

"When prices get that high, you find every nook and cranny to plant on," said Darrell Holaday, the president of Advanced Market Concepts in Manhattan, Kansas. "This report sets a negative tone for the week."

Growers are expected to harvest 13.8 million acres of spring wheat in the year that started June 1, up from 12.9 million the previous year, the USDA said.

All wheat production is expected to increase 18 percent to 2.43 billion bushels, or 66.2 million metric tons, in the marketing year, the USDA said on June 10.

Inventories of U.S. wheat will more than double to 13.3 million tons by May 31, the government said. Global stockpiles are expected to increase to 132.1 million tons, from 115.1 million.

The USDA said last night that 36% of the U.S. winter crop was harvested, up from 22% last week but below the five-year average of 48%.

However a dry forecast for the US Plains this week means the harvest should move quickly ahead as farmers take advantage of the lack of rain to collect crops in parts of Kansas and Oklahoma, the largest growers of winter wheat.

"We'll have a good week of harvest on wheat," Holaday said. "By next Sunday, you'll be amazed how much wheat in Kansas will be cut."

The USDA said the good-to-excellent condition rating for the U.S. spring wheat crop was 74%, two percentage points above the previous week.

"The spring wheat crop is doing very well," said one analyst.