This month’s World Agricultural Supply and Demand Estimates (WASDE) report released by the United States Department of Agriculture (USDA) caused a stir in grain markets when it was released on Thursday (12 August).
MATIF wheat for December jumped €9/t on the previous day's close following the release of the report to €248.75/t, while Chicago Board of Trade wheat for September jumped 26.5c/bu to 753.5c/bu on Thursday evening.
Wheat was the main driver as the global wheat outlook for 2021/2022 in the report is for reduced supplies.
Wheat production is back significantly by 16.8 million tonnes to 1,065.7 million tonnes due to reduced production in Russia, Canada and the United States.
Increases in production are expected for Ukraine and Australia. The total projected ending stocks are lower for 2021/2022 by 12.6 million tonnes.
However, consumption was predicted down by 4.2 million tonnes to 786.7 million tonnes.
US wheat production is forecast down. Ending stocks are also reduced for 2021/2022. Price is up as a result in the US.
The outlook for maize corn for 2021/2022 is for lower production. However, production was forecast higher compared with the previous month in the report.
Yields are forecast up for Ukraine, while area is reported to be up in Russia.
In the US and the EU, corn production was lowered in the report.
Barley production was forecast lower. According to the report, production is forecast down in Canada, Kazakhstan, Turkey, the EU and Russia.
The report was also favourable for oilseed prices as oilseed production was reported lower in the US and for foreign oilseeds.
Foreign oilseed production was reduced by 3.6 million tonnes in the report to 501.4 million tonnes.
Take a look at this week's Grain Trends report here.