USDA Forecast: World Wheat Production and U.S. Export Volume to Increase

 

In its December World Agricultural Supply and Demand Estimates (WASDE) report, USDA now expects world wheat production for marketing year 2019/20 to increase by 5 percent to 765 million metric tons (MMT) from last year’s 731 MMT. Lower expected production in Argentina and Australia likely encouraged USDA to also increase its forecast for U.S. wheat exports in 2019/20 by 4 percent. Already expected, record-setting total use was also raised.

 

USDA said increased wheat production is mainly in the Northern Hemisphere. The report noted European Union (EU) 2019/20 wheat production increased 12 percent over last year to 154 MMT, total Black Sea wheat production increased 6 percent over 2018/19 to 131 MMT, and U.S. wheat production increased 2 percent year-over-year to 52.3 MMT.

 

 

That volume more than offset lower output south of the equator where prolonged droughts continue to challenge wheat producers in Argentina and Australia. Argentinian wheat production is forecast to fall 3 percent from last year to 19.0 MMT. Australian wheat production is expected to decline by 7 percent year-over-year to 16.1 MMT, the country’s lowest wheat output since 2007/08.

 

 

 

Video: USDA Feb Crop Report a WIN for Soybeans + 1 Year Trade Truce Extension

USDA took Trumps comments that China would buy more U.S. soybeans seriously and headline news that the U.S./China trade truce would be extended when Trump/Xi meet in the first week of April was a BIG WIN for soybeans this week! 2026 “Mini” U.S. ethanol boom thanks to 45Z + China’s ban of phosphates from Feb. – August of 2026 will not help lower fertilizer prices anytime soon! 30 mmt of Chinese corn harvest is of poor quality and maybe a technical breakout in wheat futures.

*Apologies! Where we talk about the latest CFTC update as of 10th Feb 2026, managed money funds covered their net short position in canola to the tune of +42,746 week-on-week to flip to net long 145 contracts and not (as we mistakenly said) +90,009 wk/wk to 47,408.