Wheat Prices Crumble According to USDA Report – Reasons

The US Department of Agriculture also increased the projected global consumption of wheat by 1.9 million tons to 789.4 million tons. Behind this, high consumption of animal feed and little consumption of wheat for food, seeds and industrial use.

The bulk of the forage growth occurs in Australia and Russia due to increased production and to the European Union, where more wheat feeding is expected here as well as the result of prolonged rainfall, which impaired the quality of grain at harvest time. Projected global trade for 2021/202 increased by 2.3 million tons to a record high of 205.5 million by the USDA.

The reason for this is the rise in exports from Australia, the European Union, India and Ukraine. The biggest change in imports affects Iran, with an increase from 1.5 million tons to 7.0 million tons: the reason is further production cuts. This will be the largest Iranian wheat imports ever, surpassing the previous record of 6.8 million tons from 2008/2009.

Global end stocks projected in 2021/202 increased by 2.4 million tons to 278.2 million by the USDA. The largest increases were also in Australia, Canada and the United States. Despite the revised bullish closing stocks closing, they are still at a 5-year low.

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