Kansas, the number one wheat growing state, is likely facing the smallest harvest in almost 30 years. According to the Wheat Quality Council’s annual crop tour, ongoing drought across the U.S. Southern Plains is likely to knock crop yields to 37 bushels per acre (bpa), sharply below last year’s 48 bpa yield.
Other nearby states are suffering from similar dry conditions, and upcoming forecasts show little rain for the next week.
Drought fears boosted the price of Kansas City wheat to a ten-month high on Thursday, with July KC futures trading for $5.68 per bushel. Prices have rallied nearly 25% this year, a solace to farmers facing sharply lower yields.