Wheat farmers are harvesting a record crop for the fourth time in six years, adding to a global grain glut and cutting costs for food makers from Panera Bread Co. to Domino’s Pizza Inc.
Production will jump 7.7% to 711 million metric tons in the year ending May 30, the biggest expansion since 2009, the World Trade Organization said on Dec. 5. Reserves before next year’s harvest will increase 4%, implying a surplus, the U.S. Department of Agriculture says, raising its outlook by 2.4% from last month’s estimate. Societe Generale SA predicts that Chicago futures will drop 4.6%, to $6.10 a bushel by the second quarter.