WHEAT: U.S. 2016/17 all wheat ending stocks are raised this month and projected to reach the highest level since the late 1980’s. Feed and residual use is lowered 35 million bushels reflecting disappearance for June-November as implied by the December 1 Stocks estimated in the Grain Stocks report. Seed use is lowered 8 million bushels on the winter wheat planted area released today in the Winter Wheat and Canola Seedings report. Total supplies for 016/17 are lowered fractionally on lower beginning stocks while 2016 production is nchanged. Projected ending stocks for 2016/17 are raised 43 million bushels. The season-average farm price is raised $0.1 0 at the midpoint to $ 3.80 on higher-than-expected cash prices to date. However, this season-average price would still be the lowest since 2005.
Global wheat supplies for 2016/17 are raised 1.3 millin tons on a production increase that is only partially offset blower beg inning stocks. The largest increases are for Argentina, Russia, and the EU. Global exports are raised 1.2 million tons led by increases for Argentina, Australia, and the EU. Partly offsetting is a reduction in Canadian exports reflecting th e slow shipment p ace so far this year. Global use for 2016/17 is raised 0.1 million tons with increased food use partially offset by a red uction in feed and residual use. With total global supplies increasing faster than use, ending stocks are increased 1.2 million tons to a new record of
53.3 million.