CHICAGO (Reuters) — The U.S. government gave the winter wheat crop its lowest ratings in 12 years on Tuesday as crop health suffered through a cold and dry winter.
The U.S. Agriculture Department said in its first conditions report of the spring that U.S. winter wheat was rated 35 percent good to excellent as of April 6. That was the lowest for early April since 2002.
The previous good-to-excellent rating, issued in November before the crop went into its winter dormancy period, was 62 percent.
“This was one of the coldest winters and one of the most brutal winters we have had for quite some time,” said Shawn McCambridge, grains analyst with Jefferies Bache. “For anybody that had any doubts, today’s report kind of cleared that up.”
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Analysts expected the report, which was delayed by a day, to show ratings in a range 35 percent to 40 percent good to excellent. A year ago, the wheat crop was rated 36 percent good to excellent.
KC hard red winter wheat futures have rallied 15.8 percent so far this year on concerns the bitterly cold winter and dry soil conditions damaged the crop across the U.S. Plains. Chicago Board of Trade soft red winter wheat futures were up 12.6 percent.
Soft red winter wheat fared better during the winter as much of the Midwest growing region was covered by a protective blanket of snow during the coldest parts of the winter.
