USDA Issues First Output Estimates for 2016/17
The U.S. Department of Agriculture (USDA) estimates that global wheat output for 2016/17 will top 727 million tons, exceeding global demand by 14 million tons. Ending stocks are expected to reach 257 million tons or the equivalent of 36% of annual global consumption.
Estimates from other agencies are not as high as those issued by the USDA which states that a successful beginning to the growing season in Russia, the EU and Ukraine have prompted the department of lift its projections.
The USDA forecasts that corn 2016/17 corn production will equal 1.01 billion tons with ending stocks decreasing to 207 million tons, giving a steady stock to use ratio of 20% in agreement with the FAO and International Grains Council (IGC).
Additionally, the USDA forecasts that soybean consumption will surpass production, with output set at 324 million tons and consumption topping 328 million tons, leaving ending stocks at 68 million tons, or the lowest in three years. Output in Argentina is expected to decline due to heavy rains while output in Brazil is expected to be weak in the beginning of the season due to a water shortage.