Farmers in the northern U.S. Plains are on track to harvest the smallest spring wheat crop in 33 years, reflecting the impact of severe drought in the key farming region, the U.S. Department of Agriculture (USDA) said on Monday.
According to Reuters, benchmark futures prices on the Minneapolis Grain Exchange surged more than 5% after the USDA slashed its 2021 spring wheat harvest outlook to 345 million bushels, down 41% from a year earlier and the smallest since 1988. Chicago Board of Trade winter wheat contracts followed suit, gaining 3% to 4%.
Soaring U.S. wheat prices will further pinch import-dependent nations that have struggled with food inflation and climbing costs for shipping grain around the world.
