Record-high rainfall in May negatively impact US winter wheat plants

May saw the most rainfall of any month in the US since records began in 1895, according to the US weather authority NOAA. Particularly in the wheat-growing areas of Texas, Oklahoma, Colorado and Kansas, rainfall was well above average or even record-high. The heavy rainfall in recent weeks has had a negative impact on winter wheat plants, says Commerzbank. 

On Monday, the US Department of Agriculture (USDA) had reduced the proportion of winter wheat plants rated as being in "good" or "excellent" conditions for the second consecutive time. The report on production and demand of key agriculturals due to be published this evening by the USDA may provide further information about the impact of the heavy rainfall. Despite the rainfall and the associated reductions in quality and delays to harvesting, market participants surveyed by Reuters do not on average anticipate any downward revision of the US winter wheat production.