USDA predicts record wheat stocks in the 2016/17 season

In an April report, the experts USDA 1.16 million tonnes to 241,74 million tonnes increased the estimate of the initial world stocks of wheat in the season 2016/17 MG, mainly at the expense of the EU.

World production will increase by 290 kt to 751,36 million T. import Forecast decreased to 460 thousand tons to 176,17 mln t, export – to 340 thousand tons to 180,68 million tons Export potential upgraded to EU countries by 1 million tons to 26.5 million tons, Ukraine – 0.8 million tonnes to 17.3 million tonnes, however, reduced by 0.5 million tons for Canada and Kazakhstan and 0.2 million tons for Pakistan.

World consumption of wheat will decrease by 0.58 million tonnes to 740,84 million tonnes, a Drop of 1.8 million tonnes of feed consumption slightly offsets the increase in food consumption.

Due to the increase in the initial stocks and the reduction of foreign trade ending inventory in season 2016/17 will increase to a record 252,26 million tons, 2.32 million tons exceeds the March forecast.

Inventory in the U.S. will grow to 820 thousand tons up to the largest over the last 30 years the level of 31.55 million tons.

Russia's exports will decrease by 0.5 million tons to 28 million tons and ending stocks will increase by 0.53 million tons to 11.63 million tons.

Data from a new report will be pressure on prices during may and June, until the price of grain from the new harvest.

the Market for U.S. wheat has ignored information from the new USDA report and continued growth in speculative purchases.

the May futures for U.S. wheat rose by

•  1.65 $/tonne to 159,19 $/tones for winter SRW soft wheat in Chicago
• 1.56 $/tonne to 157,90 $/ton for solid winter HRW wheat in Kansas city