This morning also brought the June WASDE Report. Below are the highlights from the report:
WHEAT: U.S. wheat supplies for 2009/10 are lowered this month reflecting a 10-million-bushel reduction in forecast winter wheat production. Soft red winter wheat, forecast down 7 million bushels, accounts for most of the reduction, however, hard red winter wheat production is also forecast 4 million bushels lower. Partly offsetting is a small increase in white winter wheat. Feed and residual use is lowered 20 million bushels based on higher projected prices which are expected to limit the competitiveness of all but the lowest quality wheat in feed rations. Ending stocks are projected 10 million bushels higher as reduced use more than offsets the decrease in production. The 2009/10 marketing-year average farm price is projected at $4.90 to $5.90 per bushel, up 20 cents on both ends of the range as higher feed grain and soybean prices support domestic wheat values.
Global wheat supplies for 2009/10 are projected lower this month as reduced production more than offsets higher beginning stocks. Beginning stocks are raised 1.3 million tons mostly reflecting lower expected 2008/09 domestic consumption for Russia. World wheat production for 2009/10 is lowered 1.6 million tons with reductions for EU-27, Canada, and Ukraine only partly offset by increases for Russia, China, Afghanistan, Azerbaijan, Morocco, Syria, and Tunisia. EU-27 production is lowered 2.3 million tons mostly reflecting lower expected yields in Hungary, Romania, and Spain where continued dryness has reduced crop prospects. Increases for France and Denmark are partly offsetting. Production for Canada is lowered 1.0 million tons on dryness in Alberta and western Saskatchewan and on unseasonably cool temperatures that have delayed spring wheat seeding and development across the Prairie Provinces. Ukraine production is reduced 1.0 million tons on persistent April and May dryness in the country’s central growing areas. Russia production is raised 1.0 million tons on higher area and improved prospects for spring wheat yields with abundant early season moisture in the northern and eastern growing areas. Production for China is raised 0.5 million tons on higher area. Production increases for North Africa and Syria reflect higher expected yields. Global wheat imports, exports, and consumption for 2009/10 are all projected lower this month. Imports are lowered for Afghanistan, Azerbaijan, and Bangladesh. Exports are lowered for Ukraine, with increases for Russia and Turkey partly offsetting. Global consumption is projected 1.0 million tons lower with reduced wheat feeding in Ukraine and the United States, and lower food use in Russia more than offsetting higher feeding. Global ending stocks are projected at 182.6 million tons, up 0.7 million tons from last month.
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