WASDE Wheat: Increased Domestic Feed, Residual Use

Wheat Heads.

The outlook for 2019/20 U.S. wheat is for stable supplies, increased feed and residual use, and lower stocks. Feed and residual use is raised 10 million bushels on lower-than-expected second-quarter stocks reported in today’s NASS Grain Stocks report.

Seed use is down 1 million bushels reflecting 2020/21 wheat planted area released today in the NASS Winter Wheat and Canola Seedings report. Ending stocks are now projected at 965 million bushels, down 9 million from the previous report.

The season-average farm price is unchanged at $4.55 per bushel.

Foreign production for the 2019/20 market year is dropped 1.0 million tons led by a 1.0-million-ton reduction for Russia on updated government production data, and a 0.5-million-ton decrease for Australia reflecting the severe drought conditions in parts of the country. Partly offsetting is a 0.5-million-ton increase for the European Union.

Foreign consumption is raised fractionally, and global exports are raised 1.3 million tons. The export increase is led by a 2.0-million-ton increase for the EU on improved price competitiveness and a 0.5-million-ton increase for Ukraine on pace to date. Partly offsetting is a 1.0-million-ton decrease for Russia reflecting lower supplies and higher relative prices.

With foreign supplies falling and total use increasing, foreign ending stocks are lowered 1.2 million tons to 261.8 million.

Full report.

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