Wheat output in Kansas, the biggest U.S. grower of winter varieties, will fall 18 percent in 2013 after drought last year followed by an April freeze eroded grain prospects, surveys from a three-day annual crop tour showed.
The coldest start ever to the wheat-growing season in Kansas and freezing weather across the southern Great Plains are compounding damage to U.S. crops already hurt by the worst drought since the 1930s.
The Standard & Poor’s GSCI Spot Index of 24 raw materials fell 0.7 percent to settle at 641.74 in New York, led by petroleum. The UBS Bloomberg CMCI index of 26 prices declined 0.7 percent to 1,532.074.
Wheat ratings in Kansas, the biggest U.S. producer of winter varieties, fell from a month earlier as the worst drought since the 1930s persists, cutting prospects for crops that are in dormancy for the winter.
Keith Kisling normally has 1,500 head of cattle on his land near the Oklahoma-Kansas border. Last year’s U.S. drought changed all that. For the first time in four decades as a farmer and rancher, he has none.