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Recasts, updates with USDA figures, adds quote

CHICAGO, April 3 (Reuters)The U.S. Department of Agriculture (USDA) in its first weekly crop progress report of the 2023 growing season rated 28% of U.S. winter wheat in good to excellent condition, the lowest for this time of year in records dating to 1989, as drought persists in key portions of the Plains wheat belt.

The figure fell below most analysts’ expectations. Eight analysts surveyed by Reuters on average had expected the government to rate 31% of the crop as good to excellent, with estimates ranging from 25% to 36%.

The previous ratings low for the 13th week of the calendar year was 2022, when 30% of the winter wheat was rated good to excellent.

Approximately 48% of U.S. winter wheat was produced in an area experiencing drought as of March 28, the USDA said in a separate report last week, a reduction from 51% a week earlier and down from 69% as the year began.

However, drought remains concentrated in southwest Kansas and the Texas and Oklahoma panhandles, all key winter wheat production areas, according to the latest weekly Drought Monitor report.

“Some areas of the state received more rainfall (in the week to April 2), while other areas experienced hot and dry weather accompanied by high winds. The dry conditions have continued to cause small grains to suffer,” the USDA’s state report for Oklahoma said on Monday.

The U.S. winter wheat crop, planted last fall, will be harvested mostly in June and July.

Meanwhile, farmers are starting to plant spring crops. The USDA said the U.S. corn crop was 2% seeded by Sunday, matching the average analyst estimate and the five-year average. Planting was most advanced in Texas, while seeding has yet to begin in core Midwest corn states such as Iowa and Illinois.

The USDA did not release figures on planting progress for spring wheat on Monday but said it expected to publish those starting with its next weekly report on April 10. Analysts on average had estimated spring wheat planting as 2% complete, with estimates ranging from zero to 3%.

All figures in percent:

Category

Analyst average

Analyst range

USDA last week

USDA this week

Corn planted (percent)

2

1-5

NA

2

Spring wheat planted (percent)

2

0-3

NA

NA

Winter wheat conditions*

31

25-36

NA

28

*Percent good/excellent

(Reporting by Julie Ingwersen; editing by Jonathan Oatis and Sonali Paul)

((Julie.ingwersen@thomsonreuters.com; 1-313-484-5283; Reuters Messaging: julie.ingwersen.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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