USDA meteorologist Brad Rippey notes 35% of the nation's winter wheat production area is located within a drought-impacted region.
Says most of the increase in its global total grains production peg comes from an increase in the U.S. corn crop, "as expectations for U.S. yields continued to improve."
The U.S. economy performed at a 3.5% clip.
Wheat export sales also topped pre-report expectations, though the tally was not overly impressive. Corn export sales disappointed.