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WASDE: U.S. Wheat Supplies S lightly Increased On Higher Beginning Stocks & Production

WHEAT: U.S. 2018/19 wheat supplies are increased slightly this month on higher beginning stocks and production. Winter wheat is forecast up 6 million bushels to 1,198 million with modest increases in all winter wheat classes and total wheat production is now at 1,827 million. U.S. exports are raised 25 million bushels to 950 million on tightening Russian exportable supplies. Projected 2018/19 ending stocks are lowered 9 million bushels to 946 million, down 12 percent from last year. The projected season-average farm price is up $0.10 per bushel with the midpoint at $5.10, compared to the revised 2017/18 price of $4.75.
 
World 2018/19 wheat supplies decreased this month by 1.2 million tons on production declines in Russia, the EU, and Mexico not completely offset by higher projected production from India and the United States. Russia’s production is lowered by 3.5 million tons to 68.5 million on drier-than-normal conditions this spring in winter wheat areas and excessive wetness in spring wheat regions lowering plantings. Russia’s wheat production is projected down 19 percent from last year’s record 85.0 million tons. EU wheat production is reduced 1.0 million tons to 149.4 million on dry conditions this spring for winter wheat in Germany and Poland. India’s wheat production is raised 2.0 million tons to 97.0 million, based on record yields and supported by reports of higher procurement for the 2018/19 crop compared to last year.
 
Projected global 2018/19 trade is lower, mainly on reduced Russian exportable supplies with a smaller crop. Russia’s exports are reduced 1.5 million tons to 35.0 million, but Russia still remains the world’s leading wheat exporter. Global imports are lowered, mainly on reduced imports for India as the government recently raised its wheat import tariff. Projected 2018/19 world consumption is 3.0 million tons lower, primarily on reduced feed usage for Russia and the EU. Global ending stocks are raised 1.8 million tons this month to 266.2 million but are still below last year’s record 272.4 million.