The USDA (United States Department of Agriculture) released its monthly agricultural supply and demand estimates on August 10 and world wheat supplies are estimated to be down.
The report stated that the world 2018/2019 wheat supply reduced this month by 7.1 million tonnes. This was mainly due to lowered EU production, primarily in Germany.
EU wheat production is down 7.5 million tonnes to 137.5 million tonnes; the lowest since 2012/2013.
Spring wheat is reported to be performing well in Russia. The country’s wheat production has increased by one million tonnes to 68 million tonnes. The report also projects that Russia will be the world’s largest wheat exporter for the second year in a row.
Global stocks are down by 1.9 million tonnes; that’s a 5% decrease on last year, which was a record.
US corn production is up and is forecast at 14.6 billion bushels. Production is expected to be up in states like Illinois, Ohio and Nebraska, but down in Missouri and Kansas.
In the EU, corn production is reduced due to poor yields in France and Germany. However, corn yields look set to increase in the Ukraine.
Similar to corn, yields for barley are set to be higher in the Ukraine. However, yields are lowered across the EU.
Soybean production looks set to rise based on higher yields. Stocks of soybeans for 2018/2019 look set to reach a record of 5,040 million bushels; this is 5% above the July figure.