USDA raises projected world wheat use
Food use has also been updated in a number of countries, mainly as a reflection of trade changes. In Egypt, Kenya, and Serbia, food use is down 0.2, 0.2, and 0.1 million tons, respectively.
Those reductions are slightly offset by 0.1-million-tons increases in both Tanzania and Yemen. With wheat beginning stocks slightly lowe r this month by less than 0.1 million tons (tiny declines in Chile and Kyrgyzstan), and higher production that is only partly offset by a small increase in wheat consumption, ending foreign stocks are up 0.8 million tons this month. Global wheat st ocks are up 1.5 million tons to 178.2 million this month, partly reflecting an upward change in U.S. stocks because of lower projected exports.
The largest increase in wheat ending stocks happens in India, where stocks are up 1.9 million tons to 23.8 million as discussed above. Another big increase in wheat ending stocks comes from Iran, where stocks are up 0.9 million tons to 4.8 million, reflecting higher imports.
Increased projections of wheat imports are also the reason for higher wheat stocks (for a total of 0.8 million tons) in Algeria, China, Yemen, and Japan. Wheat ending stocks are projected down 0.5 million tons each for: (1) Australia, with increased projected feeding; (2) for Egypt, as lower imports are partly compensated by a decrease in consumpti on (see a discussion below in the trade section); and (3) for EU-27, where higher projected exports are only partly offset by a production increase.
This drives EU ending stocks under 10 million tons, a level unseen for about 40 years. Stocks are down 0.4 million tons for both Brazil (higher exports partly offset by lower feed use) and Canada (higher feeding). In Ukraine, stocks are also projected lower by 0.3 m illion tons (higher exports).
Slight changes in ending wheat stocks are made for several other countries.
Source: Wheat Outlook