World wheat consumption projected slightly down

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According to the USDA's Wheat Outlook report, projected foreign wheat consumption in 2012/13 is down just 0.2 percent. Foreign feed use for 2012/13 is decreased slightly this month, down 0.8 million tons with the adjustments in individual countries partly offsetting.

The largest decrease in projected feed use is for Kazakhstan, down 1.0 million tons to 2.5 million, reflecting lower wheat availability and higher prices as production declines. Feed use in Australia is reduced by 0.5 million tons. The 2011/12 record wheat harvest had a larger than usual share of feed-quality wheat, and Australia was anticipated to use more wheat for feed in both 2011 and 2012. However, though feed use in those years did increase, higher wheat prices and a shift in international demand to more grass fed Australian beef trimmed the amount of wheat used for feeding.

Australia found itself highly competitive as a supplier of feed-quality wheat, delivering record amounts of low-quality wheat to a number of Asian countries, North Africa, and Middle East, while stocking the remainder. For the EU-27, wheat feeding is up 0.5 million tons this month, reflecting higher supplies and sharply reduced corn imports. Smaller changes in wheat consumption are made for several countries.

Projected foreign food use is down by a mere 0.3 million tons, with small changes projected for Australia, Indonesia, Iran, Kyrgyzstan, Libya, Tajikistan, Uzbekistan, and Venezuela.

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