Wheat futures headed for the biggest loss in two weeks after the U.S. government increased its outlook for American inventories.
Domestic stockpiles will reach 814 million bushels in the season that ends in May, the U.S. Department of Agriculture said Wednesday in a report. That compares with 793 million estimated last month. Analysts in a Bloomberg survey forecast 794 million, on average.
The agency also said that American production of the winter variety will be bigger than analysts expected, even after some fields flooded from Texas to Nebraska. Production is forecast at 1.505 billion bushels in the year that began June 1, the USDA said. Traders surveyed by Bloomberg News expected output of 1.466 billion.
“This report eases traders’ concerns over weather worries,” Terry Reilly, a senior commodity analyst at Futures International in Chicago, said in a telephone interview. “Wheat production in the U.S. and world didn’t decline.”
CLICK HERE to read the full report
Source: Bloomberg News
