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USDA cuts U.S. winter wheat harvest outlook due to Plains drought

Created at 11 Jun · 4:29 PM1 source↑ Market-relevant
IN SHORT

The USDA reduced its U.S. winter wheat production forecast by 2% for the 2026/27 season, citing drought in the Plains. Hard red winter wheat output is projected to be the lowest since 1957.

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Key Numbers

1.030 billion bushelsU.S. winter wheat production forecast 2026/27
2%Reduction in winter wheat outlook from last month
1.402 billion bushelsLast year's winter wheat crop
497 million bushelsHard red winter wheat production projection
515 million bushelsPrevious hard red winter wheat outlook
804 million bushelsLast year's hard red winter wheat crop
1957Year of lowest hard red winter wheat production
1986Year dating USDA crop condition records
25%U.S. winter wheat crop in good-to-excellent condition

Who's Involved

USDA
U.S. Department of Agriculture, cut crop outlook
Karl Plume
Reuters reporter
Donald Trump
U.S. President mentioned in context of trade disruptions

↳ Why This Matters

The reduced U.S. winter wheat harvest outlook signals potential supply constraints and higher prices for wheat-based products, impacting consumers and adding to the financial pressures faced by farmers already dealing with increased input costs and trade disruptions.

Key facts

  • The USDA lowered its U.S. winter wheat production forecast for the 2026/27 season to 1.030 billion bushels.
  • The outlook for hard red winter wheat, the largest variety, was reduced to 497 million bushels.
  • This projection for hard red winter wheat is the lowest since 1957.
  • The U.S. winter wheat crop condition rating is at its lowest point since 1986, with only 25% rated good-to-excellent.
  • Drought conditions in the Plains are impacting key wheat-growing states like Kansas, Oklahoma, and Texas.

The U.S. Department of Agriculture has lowered its forecast for the nation's winter wheat harvest, projecting 1.030 billion bushels for the 2026/27 season, a 2% decrease from the previous month. This reduction is primarily attributed to severe drought conditions across the Plains states, which have particularly impacted the production of hard red winter wheat. The outlook for this variety has fallen to 497 million bushels, the lowest since 1957, and significantly down from last year's 804 million bushels.

The USDA's latest weekly crop conditions report indicated that only 25% of the U.S. winter wheat crop is in good-to-excellent condition, the lowest rating for this period in records dating back to 1986. Farmers in key wheat-producing regions like Kansas, Oklahoma, and Texas are experiencing minimal to no grain yields in some areas. These production challenges add to the financial strain on U.S. farmers already grappling with increased fuel and fertilizer costs, exacerbated by disruptions such as the closure of the Strait of Hormuz and trade tensions stemming from U.S. President Donald Trump's tariff policies.

Frequently asked questions

The USDA projects U.S. winter wheat production at 1.030 billion bushels for the 2026/27 season.

The reduction is due to harsh drought conditions in the U.S. Plains, which have significantly impacted the hard red winter wheat crop.

The projected output of 497 million bushels for hard red winter wheat is the lowest since 1957, indicating a substantial year-over-year decline.

As of the latest report, only 25% of the U.S. winter wheat crop is rated as good-to-excellent, the lowest since USDA records began in 1986.

What Happens Next

01The USDA will continue to issue weekly crop condition reports.
02Future USDA reports will provide updated production forecasts as the harvest progresses.

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Cadence
CME Headlines
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How It Developed

The USDA cut its U.S. winter wheat crop outlook by 2% from the previous month.
Production of hard red winter wheat is projected to fall to 497 million bushels.
The U.S. winter wheat crop condition rating is the lowest since 1986.
Farmers in key wheat states are reporting little to no grain to gather due to drought.

Sources

T1
USDA cuts U.S. winter wheat harvest outlook after Plains droughtReuters via PiQSuite

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