Farmers from Australia to Europe to the U.S. are poised to reap the second-largest wheat crop on record as fields recover from drought and heat waves, boosting global stockpiles for the first time in four years.
Conditions in the U.S., the biggest wheat exporter, are improving after snowstorms increased soil moisture following the worst drought since the 1930s Dust Bowl, according to the U.S. Department of Agriculture.
A bear market in palm is poised to deepen in 2013 as the most-used cooking oil slumps to less than 2,000 ringgit ($644) a metric ton on increased global supplies of vegetable oils, according to Dorab Mistry.
U.S. crop-insurance rates for corn, soybeans and wheat are being set higher than this year’s projected cash prices, encouraging more planting a year after a drought led to record damage payout to farmers.
Palm oil probably will drop this year after Asian producers boosted acreage and global oilseed supplies rose, said Dorab Mistry, a Godrej International Ltd. director who’s traded the commodity for more than 30 years. Prices fell, erasing this year’s gain.
Prices for the two biggest U.S. crops will fall this year on record corn and soybean production, easing food inflation while providing less cash for growers recovering from drought, the government said.
U.S. farmers will plant 77.5 million acres with soybeans this year, up 0.4 percent from 2012, as growers seek to take advantage of prices driven higher by drought, according to Joe Glauber, the U.S. Department of Agriculture’s chief economist.
U.S. farmers will plant 56 million acres with wheat in the year starting June 1, up 0.5 percent from the previous year, according to Joe Glauber, the chief economist for the U.S. Department of Agriculture.