Wheat production in Kansas, the 2nd largest U.S. grower, is expected to drop as dry weather persists, with 46% of the state experiencing drought conditions.
Government data shows the states winter-wheat crop is the worst condition it has been in 15 years. U.S. inventories would erode with less output, these inventories are already expected to drop 14% for the worlds biggest wheat exporter.
Panera BreadCo., a St. Louis based restaurant, Chain an General Mills Inc., the maker of Wheaties Cereal, plan to raise prices and pass them on to their consumer as Wheat Futures are up 57% over the past year after adverse weather conditions cut production from Russia to Canada in 2010.
Through the Mid West and Great Plains about two thirds of the planted crops are winter varieties which lay dormant through March and are harvested from June through August.
In the Northern States the spring variety wheat is planted in April and May with harvesting taking place from August through September.