What is in this article?:
- Report confirms more competitive global wheat market
- Increase in feed use
• IGC estimates world wheat use for 2011/12 at 679 MMT, a 2.0 MMT increase attributed almost entirely to increased feed wheat use.
• Large global supplies of low and medium quality wheat, combined with higher than average corn prices, have caused many livestock producers to switch from corn, a traditional feed grain, to wheat.
The 2011/12 world wheat supply is 3 percent greater than last year thanks to excellent production and abundant carryover stocks, according to the International Grains Council (IGC).
In its monthly report released Nov. 24, IGC’s total global stocks estimate is 879 million metric tons (MMT), 28 MMT more than last year and equal to the current U.S. Department of Agriculture (USDA) estimate.
IGC estimates world production will be the second largest on record at 683 MMT, despite a downward revision of 1.0 MMT from last month.
Most of the 20.0 MMT increase, compared to 2010/11 production, comes from the Black Sea region, which experienced a severe drought in 2010/11.
Production estimates for that region include an additional 16.5 MMT for Russia to 58.0 MMT, a 28 percent increase to 21.5 MMT for Ukraine and the largest crop in 20 years—80 percent greater than last year at 18.0 MMT—for Kazakhstan.
The U.S. production estimate decreased 200,000 MT from IGC’s estimates last month. That is down 10 percent on the year to 54.4 MMT, due to lower than expected spring wheat production.