Forecasts for ample global wheat supplies are causing the biggest bests against wheat prices since mid-February and futures have fallen 15% this quarter – the most in three years. Global wheat stockpiles are expected to reach a three -year high before the 2015 harvest as output from other producers such as India and the EU is expected to make up for the small harvest expected in the U.S. World inventories will equal 188.61 million tons by the end of May 2015 according to the U.S. Department of Agriculture’s June 11th report, and prices are forecast to drop to $5.71 by the first quarter of 2015. In the U.S excess rains in some regions are ruining crops and causing the worst outbreak of wheat vomitoxin in five years, while in other regions such as the South and Great Plains, drought is parching fields forcing farmers in states such as Texas to abandon wheat in favor of sorghum.
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