Chart: Wheat Acres Forecast at Lowest Since 1970
Weak prices and heavy global supplies are expected to take a big bite out of U.S. wheat acres in 2016.
According to a forecast released Thursday at the USDA’s annual Agricultural Outlook Forum, American all wheat planted area for 2016 will amount to just 51 million acres (see chart below). If accurate, that will be down 6.6% from a year earlier and represents the smallest all wheat acreage since 1970. The USDA’s estimate also came in well below the average trade guess of 52.4 million acres.
The USDA did not provide a specific breakdown, but forecast that 2016 U.S. spring wheat (including durum) plantings would decline 5% from the previous year’s combined 15.18 million acres. The USDA previously reported in January that U.S. winter wheat seeded area for harvest in 2016 totalled an estimated 36.6 million acres, down 7% from a year earlier and also below trade expectations.
Earlier this week, some wheat futures contracts hit their lowest in 5 ½ years, while estimated 2015-16 global wheat ending stocks are estimated record high at 238.87 million tonnes.
Source: DePutter Publishing Ltd.
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