USDA raises forecast for global wheat production

Global wheat production will be stronger than expected for the 2009-10 marketing year due to higher output in Argentina and Ukraine.

The new world forecast estimates production of 677.44 million tonnes of wheat, up from last month's prediction of 676.13 million tonnes.

"Argentina production is raised one million tonnes as abundant, late-season rains raised harvested area and yields in key eastern growing areas," the USDA said in Tuesday's (Feb 9) monthly World Agricultural Supply and Demand Estimates report.

The new forecast for Argentina's wheat crop in the 2009-10 marketing year is nine million tonnes.

Ukraine will see stronger yields boost production to 20.9 million tonnes, up from the January prediction of 20.5 million tonnes, the USDA said.

The USDA did not change its forecast for US wheat production, which remains at 60.31 million tonnes, or 2.216 billion bushels, but the predictions for US ending stocks and imports were revised this month.

The US will be importing more wheat than expected, the USDA said Tuesday in the new supply and demand report. The new forecast is for 115 million bushels of wheat imports, a five-million-bushel increase from a month ago.

"Imports are raised based on expected shipments of South American and European feed quality wheat into the southeastern US market," the USDA said.

US wheat carryout for 2009-10 is now expected to total 981 million bushels, up from USDA's January forecast of 976 million bushels.