January 16, 2009

World wheat use in 2008-09 is projected down 2.1 million tonnes this month to 653.9 million tonnes, said the USDA.

South Korea has been imported and using 500,000 tonnes less wheat for animal feed than expected, as manioc and corn distiller's dried grains are used as substitutes. 

Global ending stocks for 2008-09 are projected up slightly to 148.4 million tonnes. The largest change in projected stocks is for Russia, down 1 million tonnes to 7.1 million tonnes.

Russia has exporting fiercely in the first half of 2008-09, but export prospects were boosted and stocks projection reduced despite that the government was buying wheat for state reserves.

Stock prospects have also increased for the EU, Saudi Arabia, Turkey and the US.

For the EU, increased imports will more than offset a slight cut in production, boosting stocks.

Saudi Arabia has started importing large amounts of wheat, boosting stocks by 400,000 tonnes in anticipation that reduced production subsidies will lower future production.

Turkey's ending stocks is projected up 300,000 tonnes, as increased production and imports offset rising exports.