USDA June 2013

banks-investment-advi-007USDA REPORT DD. 12/06/2013

WHEAT: Global wheat supplies for 2013/14 are lowered 5.6 million tons reflecting lower foreign production. World production is projected at 695.9 million tons, down 5.2 million from last month with reductions for Ukraine, Russia, and EU-27. Persistent dry weather in key growing areas of southeastern Ukraine and adjoining areas of southern Russia reduces production prospects 2.5 million tons and 2.0 million tons, respectively. EU-27 production is lowered 1.3 million tons with small reductions in a number of member countries.

Global wheat consumption for 2013/14 is reduced slightly with reductions in feed and residual use for EU-27, Russia, and Ukraine more than offsetting higher expected food use for India, Iran, and Egypt. Global wheat trade is raised with imports increased 1.0 million tons for Iran. Partly offsetting is a 0.5-million-ton reduction in imports for EU-27 with lower exportable supplies in Ukraine. Ukraine and Russia exports are lowered 1.5 million tons and 1.0 million tons, respectively. Export increases of 1.5 million tons for EU-27 and 0.5 million tons for Canada, combine with the U.S. increase this month to raise global exports 0.8 million tons. World ending stocks for 2013/14 are projected at 181.3 million tons, down 5.1 million from last month, and just above the level projected for 2012/13.

COARSE GRAINS: Global coarse grain supplies for 2013/14 are projected 4.3 million tons lower mostly on the reduction expected in U.S. corn output. Global 2013/14 coarse grain trade is raised slightly this month.

Global corn consumption is down 1.7 million tons mostly based on changes to domestic use in the United States. Global corn ending stocks for 2013/14 are projected 2.8 million tons lower with reductions for the United States. At the projected 151.8 million tons, 2013/14 world corn stocks would be up 27.5 million tons from 2012/13 and the largest in 12 years.