Global supply of wheat in the 2017/18 season will reach a record level
the August balance forecast USDA wheat in 2017/18 MG is purely a "bear" character. And the reasons for such influence are mostly of Russian origin. Market participants did not expect that the forecasts of world production and ending stocks for wheat will be substantially increased. U.S. markets reacted to the report a fall in wheat prices by 3%, which today will come to other platforms.
the global production immediately increased by 5.35 million tonnes to 743,18 mln T. the decrease in the gross collection in Canada, at 1.85 million MT, USA and 0.56 million tons, EU countries-by 0.44 million tonnes and Brazil's at 0.4 million tonnes was offset by increased production in Russia by 5.5 million tons to a record high of 77.5 million tons, 2.5 million tons to 26.5 million tons and Kazakhstan by 1 million tonnes to 14 million tonnes.
Increase the initial inventory to 510 thousand t to 258,56 THD. MT displays the amount of the world supply at a record level – more than 1 billion tons
Simultaneously consumption of wheat, particularly food, will grow by only 1.77 million tonnes to 737,05 million tons, that is, not so significantly to cover the increase in global supply. Russia will increase wheat consumption by 1 million tonnes to 42 million tonnes mainly due to forage.
the Potential in the world export increased by 1.5 million tonnes to million tonnes. 179,92 Canada will reduce exports 1.5 million tons, but Ukraine will increase by 2 million tonnes to 16 million tonnes, Russia by 0.5 million tons to 31.5 million tons, Kazakhstan by 0.5 million tons to 7.5 million tonnes.
the global ending balances in season 2017/18 increased by 4.09 million tons to a record 264,69 million tonnes, with most remnants will grow in Russia – 3.5 million tonnes to the maximum historical rate of 15.34 million tons.