What Impact Will Argentina’s Wheat Crop Have On Global Supplies?

USDA is out with its first World Supply and Demand Estimate for Global Wheat for the year.  And the highlight, Argentina’s wheat production.

“That crop is about 90% harvested now. Record yields, that'll be record production," said World Agricultural Outlook Board Chair Mark Jekanowski.  "And that record is up about 24% from the previous record. So, it's really a massive crop.”

Jekanowski noted that 3.5-million-ton month-over-month increase, coupled with a two-million-ton rise in Russian wheat production projections, adds to forecasted crop production totals, pushing global ending stocks higher.

When it comes to the U.S. wheat balance sheet.

“Beginning stocks up a little bit. That's just based on the stocks report information we got leading to that small increase in total supply, just four million bushels. Feed and residual use reduced 20 million bushels. That's again based on implied disappearance from the stocks report. And we're left then when adding up the different sides of the balance sheet there, we're left with ending stocks up 25 million bushels.”

USDA dropped the season-ending average price 10-cents to $4.90 a bushel.  Jekanowski said about 70% of the crop is currently on the market.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail glenn.vaagen@townsquaremedia.com