Wheat closes lower after USDA lifts US production estimates

Wheat futures fell on Wednesday, following the US Department of Agriculture's monthly report, as it raised its estimate for the US wheat output for the 2020/2021 marketing year.

The USDA raised its expectations for the US wheat production by 14 million bushels to 1.8 billion bushels, but lowered exports estimate by 10 million to 130 million bushels.

The USDA also lowered its estimates for wheat ending stocks by 17 million bushels to 925 million, which would be a 6-year low if these forecasts realized.

While the department raised its estimate for corn production by 15.3 million bushels to 278 million bushels.

Wheat September futures fell 0.9% to close at $4.91 per bushel, after hitting a day high of $4.98 and a low of $4.88.