December 14, 2006

USDA: Wheat Competition Increases

World wheat trade projected for 2006/07 July-June international marketing year remained virtually unchanged this month at 111.9 million tonnes, according to the US Department of Agriculture's Wheat Outlook Report.

USDA notes Brazil's projected imports increased 0.2 million tonnes to 7.5 million, but this small change was offset by a slight reduction in the unaccounted imports. Argentina's projected exports increased 0.5 million tonnes to 9.5 million, due to increased production prospects and large export registrations.

US export prospects declined 0.5 million tonnes to 25.5 million.

The first half pace of US wheat exports and sales during 2006/07 has been sluggish, says the USDA. According to Census trade data, exports from July-October 2006 declined by 22 percent to 8 million tonnes.

This month's reduced export forecast still assumes an increase in sales during the last months of 2006/07, compared to the previous year, as foreign supplies remain relatively tight despite this month's changes in global production, says the agency report.