Wheat tumbles despite tight stocks

Canada entered the 2023-24 crop year with the lowest combined wheat and durum stocks in history.

Agriculture Canada estimates there were 3.24 million tonnes of both crops on hand as of Aug. 1, 2023.

That would break the previous record low of 3.66 million tonnes set in 2021-22 following a severe drought.

Analysts are also forecasting lacklustre Canadian wheat production. MarketsFarm pegged all-wheat production at 30.4 million tonnes as of the end of July, well below Agriculture Canada’s current estimate of 33.2 million tonnes.

Meanwhile, the U.S. Department of Agriculture is forecasting an average U.S. spring wheat yield of 41.8 bushels per acre, down from last year’s 46.2 bu.