USDA: Global Wheat Numbers Remain Fluid

Despite USDA's recent adjustment upward in global wheat production from December, when it comes to year over year forecast, the Department reported a decrease around 30 million metric tons.  World Agricultural outlook Board Chair Seth Meyer said the primary change on the global wheat outlook was in forecast for Russian crop production.

"Where we added 1.6 million metric tons the Russians, when you look at prices, were very price competitive into a lot of different markets.  We're starting to see the market tighten up a little bit."

Meanwhile the domestic wheat balance sheet was impacted by winter wheat seedings data and, "the rest of it comes from NASS also released what would have been the stocks information in January from that information you can calculate what implied disappearance is, implied disappearance came in less than folks had anticipated and so we also reduced feed and residual use for wheat based upon that."

Meyer noted that also means a slight increase in wheat ending stocks from December.

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