There is a lot of wheat in the world. More, it seems, each month.

For the seventh month in a row, the U.S. Department of Agriculture (USDA) increased its 2011/12 global wheat supply estimate as part of its monthly World Agricultural Supply and Demand Estimates (WASDE) report.

In the report released Jan. 12, USDA estimates global supplies at a record 891 million metric tons (MMT), up 2.7 MMT from last month. Markets reacted negatively to the bearish report last week, even though it only reconfirmed previous estimates.

World production is a major contributing factor to such large global stocks, setting a record for three of the last four years. This year, USDA expects a new record of 692 MMT global production.

Total production estimates increased 2.5 MMT from last month, including a 1.5 MMT increase in Kazakhstan to 22.5 MMT due to nearly perfect growing season weather.

Modest production increases in Russia and Brazil accounted for the rest of the increase. USDA now estimates total Black Sea production at 114 MMT, up 175 percent from last year when major drought greatly cut production.