Hard red winter wheat futures on the Kansas City Board of Trade (KCBT) ended more than 2 percent lower on Friday, pressured by USDA's healthy wheat production outlook. The KCBT July ended down 22-1/2 cents, or 2.6 percent, at $8.45-1/2 per bushel, after falling as low as $8.35 on the day.
The losses came after USDA said Friday that US farmers are expected to reap their largest wheat crop in a decade amid a record world wheat crop. Prices were underpinned by strength in crude oil and gold and a weaker dollar.
Based on field surveys, USDA forecast the US winter wheat crop at 1.777 billion bushels, up 17 percent from last year. The upturn indicates overall US wheat output of 2.392 billion bushels, the largest since 1998. Analysts were looking for 1.707 billion bushels.
USDA pegged the crop in Kansas, typically the top producing state, at 357.2 million bushels, with an average yield of 38 bushels per acre. An industry group that surveyed the state this week reported on Thursday that they expected production in Kansas to tally 379.1 million bushels on an average yield of 43.3 bushels per acre.
The USDA pegged all US wheat at 2.392 billion bushels. Analysts were looking for 2.312 billion bushels. USDA pegged 2008/09 ending stocks at 483 million bushels. World output for 2008/09 would include 656.01 million tonnes of wheat, the USDA said. World stocks were seen at 124 million tonnes, up from 110 million in 2007/08.
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