US wheat stocks to lowest level in 12 years

The wheat price on the CBoT fell 2% to $1.006 per bushel (approximately €334 per tonne). Corn prices rose to $748,75 per bushel (approximately €266 per tonne). That is an increase of 1,5%. The soy price lost almost 3% compared to the day before. On the Matif, wheat and corn closed slightly higher yesterday at €369,50 and €322,75 per tonne respectively.

The price movements of corn and soy are in line with what can be expected with the USDA figures according to analysts. The soy area this season will be expanded by 4% compared to last season, according to the estimate, while 4% less corn will be sown. U.S. corn stocks through March 1 are estimated at 7,85 billion bushels (about 200 million tons). That is 2% more than on the same reference date last year. The soy stock is 24% larger and amounts to 1,93 million bushels (approximately 52 million tons).

Wheat acreage is growing
The signals given by the report for wheat are more difficult. The total area grew by 1% compared to last year to 47,7 million acres (approximately 19 million hectares). Although the area is being expanded, it is the fifth smallest area under wheat since 1919, when record keeping began. The wheat stock on the reference date amounts to 1,02 billion bushels (approximately 27 million tons). That is 22% lower than last year and the smallest stock in twelve years. The stock of wheat still at the farmer is itself 39% lower. Based on the USDA figures, several analysts call the decline in the wheat price remarkable.

In total, the largest crops for American agriculture are grown on 317,4 million acres (approximately 128 million hectares). That's 1,2 million acres (approximately 0,49 million hectares) more than last season. The growth in the total arable area is therefore smaller than what analysts assumed before the report was published.