WHEAT
US wheat ending stocks for 2009/10 are projected 15 million bushels higher this month reflecting lower expected food use.
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.
Higher flour extraction rates reduce the quantity of wheat needed for milling. Food use for 2008/09 is estimated 1 million bushels higher based on the latest revisions to mill-grind data.
The marketing-year average farm price projection is unchanged at $4.65 to $5.05 per bushel. Global wheat supplies for 2009/10 are projected 1.0 million tons higher as increased production in Canada and EU-27 more than offset lower beginning stocks and production for Australia. Global wheat production is projected 2.0 million tons higher.
Production is raised 2.5 million tons for Canada based on the latest estimates from Statistics Canada which sharply raised yields in the Prairie Provinces.
Production is revised 0.3 million tons higher for EU-27 based on an upward yield revision for Italy. FSU-12 production is also raised slightly with a 0.2-million-ton increase in production for Belarus.
Partly offsetting is a 1.0-million-ton reduction for Australia production based on a downward revision to the latest government forecast.
Australia production is also lowered for 2007/08 and 2008/09 in line with recently revised government estimates. These changes lower 2009/10 Australia beginning stocks 0.8 million tons. Global wheat trade for 2009/10 is projected slightly lower this month, mostly reflecting lower imports by Iran and lower exports by Australia and China.
Imports for Iran are lowered 1.0 million tons based on the slower pace of reported shipments as compared with last year at this time.
Exports are lowered 0.5 million tons for Australia, reflecting tighter exportable supplies. Exports are lowered 0.5 million tons for China based on the slow pace of shipments to date and relatively high internal wheat prices
. Exports are also lowered 0.2 million tons for India based on smaller-than-expected recent shipments. Partly offsetting is a 0.5-million-ton increase in exports for Canada with larger available supplies.
Global consumption is lowered this month mostly reflecting a 1-million-ton reduction in expected EU-27 feeding and reductions of 0.8 million tons and 0.4 million tons, respectively, in food use in India and the United States. With higher production and lower use, global ending stocks are raised 2.6 million tons.
COARSE GRAINS
US feed grain ending stocks for 2009/10 are projected higher this month with a reduction in expected corn exports. Corn exports are lowered 50 million bushels based on the slow pace of shipments to date and increased competition from larger supplies in Ukraine. Projected US corn ending stocks are raised 50 million bushels.
At the projected 1,675 million bushels, ending stocks would be nearly unchanged from 2008/09. The 2009/10 marketing-year average farm price projection for corn is unchanged at $3.25 to $3.85 per bushel. Global coarse grain supplies for 2009/10 are projected 3.0 million tons lower mostly as a result of reduced India millet production. Global coarse grain beginning stocks are lowered based on multiple year revisions that raise estimated corn feeding in Iran and barley consumption in Kazakhstan.
World corn production is raised mostly reflecting a 0.5-million-ton increase for Ukraine. World barley production is raised 1.0 million tons with increases for Australia, Canada, and Belarus.
World oat production is lowered slightly with small reductions for Canada and Australia more than offsetting an increase for Belarus. Production changes for Australia, Belarus, and Canada reflect the latest government estimates from these countries.
India millet production is lowered 4.0 million tons as area expansion on unplanted rice land was less than expected and the erratic monsoon season lowered yields. Lower production reduces India millet consumption, but has little impact on global coarse grain trade. Global coarse grain trade for 2009/10 is nearly unchanged this month as higher Ukraine corn exports offset lower US corn exports and higher Australia barley exports offset lower EU-27 barley exports.
World coarse grain consumption is lowered mostly as a result of reduced India millet use. Sorghum consumption is also lowered reflecting a small reduction in food, seed, and industrial use for China and a small reduction in feed use for EU-27.
World barley consumption is raised with increased feed use for Canada and Australia and increased food, seed, and industrial use for Kazakhstan, Morocco, and Australia.
Mixed grain feeding is also raised for EU-27. Global coarse grain ending stocks are down 0.8 million tons with reductions in projected stocks of mixed grains, millet, rye, barley, and oats more than offsetting an increase in sorghum.
World corn stocks are nearly unchanged.
OILSEEDS
Total US oilseed production for 2009/10 is projected at 97.9 million tons, up fractionally due to a small increase in cottonseed.
Soybean exports are increased 15 million bushels to 1.34 billion reflecting the record export pace in recent weeks and higher projected soybean imports by China. US export commitments (shipments plus outstanding sales) were record high through November, up almost 60 per cent from a year ago. With projected crush unchanged, soybean ending stocks for 2009/10 are projected at 255 million bushels, down 15 million from last month.
Soybeans and product price projections are all higher this month. The US season-average soybean price range for 2009/10 is projected at $8.75 to $10.25 compared with $8.20 to $10.20 last month. The soybean meal price is projected at $260 to $310 per short ton, up $10 on the bottom of the range. Soybean oil prices are projected at 35.5 to 38.5 cents per pound compared with 33 to 37 cents last month. Global oilseed production for 2009/10 is projected at 428.6 million tons, down 0.3 million from last month. Foreign oilseed production accounts for most of the change with increases for soybeans, rapeseed, and cottonseed more than offset by reductions for sunflowerseed and peanuts.
Global rapeseed production is projected at a record 59.4 million tons, up 1.3 million from last month with gains for Canada more than offsetting lower production for India. Canadian rapeseed production is raised 1.6 million tons to 11.8 million based on the latest survey results from Statistics Canada. Higher-than-expected yields account for the change. India rapeseed production is lowered due to reduced harvested area. Hot, dry conditions during much of the planting season prevented area from reaching earlier expectations.
Global sunflowerseed production is projected at 30.7 million tons, down 1 million from last month. Lower production in Argentina and Russia account for most of the change. Other changes include reduced peanut production for China and India, and increased cottonseed production for Pakistan. Global oilseed trade is projected at 94.4 million tons, up 0.7 million from last month. Increased rapeseed exports from Canada and Australia and increased soybean exports from the United States account for most of the change. China soybean imports are raised 0.5 million tons to 41 million, just below the record 41.1 million imported in 2008/09.
