The wheat crop in Texas does not have to worry about Tropical Storm Harvey, which has wreaked havoc in America. It is mainly exports that are hindered by the consequences. Cotton farmers and livestock farmers have to deal with the greatest damage.
According to the Texas Wheat Producers Board, Texas wheat crops were not affected by the tropical storm. It's a different story for grain exports. Texas Gulf ports ship a quarter of all U.S. wheat and a small portion of soybeans and grain corn. Most of these crops are shipped through Louisiana, but 6 in 10 bushels of corn and soy are exported through the state.
Ports face problems
If Harvey causes problems on the Mississippi River, corn and soy exports could be hurt. Now only the ports of Houston and Corpus Christi are experiencing problems, a spokesperson said.
Soybeans are expected to suffer significantly from the floods. For cotton farmers, who were still in the middle of the harvest, the damage is much greater. Texas is the largest cotton producing state in the US with a production of 8,8 million bales of cotton. Total US production is 20,5 million bales.
Futures market falls
Rain in other parts of the US actually causes the futures market in Chicago to trade lower. The soy and corn crops are helped by precipitation. Corn, soy and wheat futures all fell on the CBoT.
More water expected
Hurricane Harvey is currently back in the Gulf of Mexico. It is expected to make landfall again later, causing the Texan coast to once again experience enormous amounts of precipitation. A lot of rain is also expected in neighboring state Louisiana.
More than 1.000 millimeters of rain has now fallen in Houston, Texas. Another 250 to 400 millimeters are expected to be added in the coming days. Texas is the state with the most cows, mainly for meat production. The floods are a disaster for these companies.