December 11, 2009

US wheat ending stocks forecast on lower food use 

The US Department of Agriculture raised its forecast for US wheat ending stocks in the 2009-10 marketing year "reflecting lower expected food use," according to its December World Agricultural Supply and Demand Estimates report.

US wheat ending stocks are now forecast at 900 million bushels, up from last month's prediction of 885 million bushels.

"Food use is projected 15 million bushels lower based on the latest mill-grind data from the US Census Bureau and indications of 2009 crop quality that suggest higher-than-normal flour extraction rates again in 2009-10," the USDA said in the latest instalment of the monthly report.

Less wheat is needed to make food when flour extraction rates are high.

While less wheat was seen needed domestically by the food industry, the USDA forecast for US wheat production this year remained unchanged in the December report at 2.216 billion bushels and no change was made to the forecast for 875 million bushels of exports.

Worldwide, though, "wheat trade for 2009-10 is projected slightly lower this month," the USDA said.

Global wheat exports are now seen totalling 124.67 million tonnes, down from USDA's November prediction of 125.32 million tonnes.

That dip in trade activity is mostly due to "lower imports by Iran and lower exports by Australia and China," the USDA said.