(Washington) World wheat production should be more abundant thanks to a better harvest in Russia, Ukraine and India for the 2023/2024 campaign, according to estimates from the monthly report, known as “Wasde”, published by the United States Department of Agriculture. Agriculture (USDA).
Global wheat supply will increase by 10.8 million tonnes to 800.19 million tonnes, not including remaining stocks of 266 million tonnes, “mainly due to higher production from Russia, India, the European Union and Ukraine”.
Russia is expected to post a production of 85 million tonnes, up 3.5 million from the previous estimate, thanks to favorable weather conditions “including abundant spring rains”.
India will also increase its production by 3.5 million tonnes to 113.5 million. European wheat production is expected to be up by 1.5 million to 140.5 million tonnes.
Finally, Ukraine is expected to produce a million tonnes more than previously estimated at 17.5 million tonnes “thanks to favorable weather conditions in southern Ukraine” even if production remains lower than last year. (20.1 million tons) and before the war with Russia (33 million).
Also for maize, the global supply will increase but to a lesser extent, increasing by 3.8 million tonnes to 1.22 billion tonnes, according to forecasts in the USDA report.
The increase mainly comes from Ukraine with 2.5 million tonnes more corn than previously expected.
Reacting to these better production numbers, wheat prices for the July 23 futures contract edged down 0.12% to $6.2550 per bushel around 12:40 p.m. EST.
The price of the corn futures contract fell 1.07% to $6.0400.
“Overall it’s a no surprise report,” commented Dewey Strickler of Ag Watch Market Advisors.
“The only reason the price of soybeans is going up is because there was an export sale of soybeans of 197,000 tonnes to an unknown destination, announced on Friday,” he added.
The price of soybean futures for July delivery rose 1.60% to $13.85.