Weather woes | Wheat class usually accounts for 20 percent of U.S. production; hard red winter wheat expected to fare better
CHICAGO, Ill. (Reuters) — Rainy weather that slowed harvesting in the U.S. Midwest this month also stalled the planting of winter wheat, which experts say could threaten crop yields.
The effects have been most noticeable in midwestern states such as Illinois and Indiana, where farmers grow the wheat used in cookies and snack foods.
Soft red winter wheat typically accounts for 20 percent of all U.S. wheat production.
The U.S. Department of Agriculture said the Illinois wheat crop was 22 percent seeded by Oct. 19, far behind the five-year average of 59 percent and the second-lowest percentage for this time of year since 1982.
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“It’s certainly a concern. According to our best practices, we ought to be finishing up by now,” said Emerson Nafziger, an extension agronomist with the University of Illinois.
The delays helped lift July 2015 wheat futures on the Chicago Board of Trade Oct. 21 to their highest level in more than a month, at US$5.51 per bushel.
Prospects are brighter for hard red winter wheat, the largest U.S. wheat class, with a typical 40 percent share of production.
Though a slow soybean harvest delayed planting in Kansas, seeding was 78 percent complete by Oct. 19. Seeding was nearly complete in neighbouring Nebraska, as well as Montana.
Farmers in many areas immediately plant wheat into the same fields after harvesting soybeans or corn.
Agronomists advise Midwest farmers to sow wheat by late October so the plants have time to produce tillers, or stems, before going dormant for winter.
“If it’s planted late, then the trend is for somewhat reduced yield,” said Chuck Mansfield, an extension agronomist with Purdue University in Indiana.
Forecasts called for mostly clear skies across the Midwest last week, offering a chance to make up for lost seeding time.
“It doesn’t cost a tremendous amount to put wheat out, so it’s something someone might gamble with,” said Jim Gerlach, president of A/C Trading in Fowler, Ind.
Chicago Board of Trade wheat futures have not fallen as sharply this summer as have soybeans and corn. For 2014, front-month wheat is down 14 percent at around $5.20 a bu., while corn is down 16 percent at $3.56 a bu. and soybeans are down 26 percent to $9.63 a bu.
Kansas city hard red winter wheat futures are trading near $6 a bu. after hitting a four-year low this month at $5.50.
Questions remain about demand for softer red winter wheat, which is not as competitive globally as hard wheat, especially after farmers saw discounts at local elevators because of quality problems with this year’s soft wheat harvest.
“There’s nothing that sends a strong signal that we need to have more of this,” Nafziger said of soft wheat.
Private analytics firm Informa Economics last week projected that U.S. soft red wheat seeding for next year would drop to eight million acre, from 8.5 million a year ago.
