April 2, 2015

Lower EU wheat stocks due to higher animal feed use

A higher consumption of soft wheat by animal feed makers has prompted the European Commission to lower its second forecast for these stocks to 16.2 million tonnes, at the end of the 2015-16 season.

The volume represents a fall from 18.7 million tonnes in early March. Still, it is higher than 13.3 million tonnes at the end of the current season.

Exports of EU's soft wheat stays at an estimated 27.1 million tonnes, a decline from a record 31 million tonnes this season.

Animal feed use of wheat may increase to 50 million tonnes during end 2015-16, hence the current forecast of stock volumes. The volume hovers over the 48 million tonnes recorded in early March, but still lower than 51.9 million in 2014-15.

The commission also slashed its 2015-16 estimate for EU's corn, for animal feed, by three million tonnes. The cut results in 59.8 million tonnes which is lower than 62.8 million tonnes in early March.

Corn ending stocks for the bloc could reach 19.15 million tonnes at the end of the 2015-16 season. The volume rises above 15.6 million tonnes in a past forecast and edges closer to an estimated 20.9 million tonnes for 2014-15.