WHEAT: The U.S. 2016/17 wheat supply and demand estimates are unchanged from last month. The marketing year average price received by producers is lowered $0.10 per bushel at the midpoint to a range of $3.30 to $3.90. The reduction is due to lower than expected prices to date.
Global wheat supplies for 2016/17 are raised 0.4 million tons on a 1.4-million-ton production increase that is partially offset by decreased beginning stocks. Production increases for India, Kazakhstan, Australia, Brazil, and Canada are partially offset by reductions for the EU and China. Most changes are attributable to harvest reports and government data. The Australia increase is based on continued excellent growing conditions thus far in the growing season, with yields projected to be nearly record high. Brazil is also experiencing favorable growing conditions with yields projected record high. Global exports are raised 2.1 million tons led by a 1.0-million-ton increase for Australia and a 0.5-million-ton increase for Kazakhstan, both on larger crops. Export gains are partially offset by a 1.0-million-ton decrease in EU exports on the continued decline in supplies. Total global use is up 4.2 million tons with increases in both food and feed use. With total use rising faster than supplies, world ending stocks are lowered 3.8 million tons but remain record large.
Source : USDA WASDE