World Wheat Supply Continues To Increase

The global wheat supply continues to move higher.

"We increase world wheat production [in December's USDA global supply and demand estimates] again by about 1.3 million tons and that would put global production at a new record," said World Agriculture Economic Outlook Board Chair, Mark Jekanowski.

He added a variety of factors led to the rise in world wheat supplies.

"A big rebound in production out of Australia. They'd suffered through several years of pretty severe drought. We increased our Australia wheat production forecast by 1.5 million tons for this year's crop. That would be their second largest crop on record. And also worth noting that if that is achieved then Australia would also join Russia and Canada as all three of those countries are looking at their second largest crops on record."

Despite more world wheat production forecasted, increases in both demand and exports reduce global ending stocks almost four million tons from the previous month."

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