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FAO Predicts Significant Jump in US and China Wheat Stocks

After four years of low global wheat usage, the UN Food and Agriculture Organization (FAO) is predicting ‘major surges’ in wheat stocks for the U.S. and China in its latest forecasts.

Global wheat consumption is expected to see a marginal increase, keeping pace with population growth, while usage for feed and industrial purposes is expected to fall, with feeding expected to decline by 2.6% year on year.

Total global wheat output in 2016 is forecast to decline by 10 million tons, or 1.4% year on year to 724 million tons as a result of lower production in the EU, U.S. Morocco, Ukraine, and particularly in Africa.

Global wheat stocks are forecast to reach 215.5 million tons in 2016/17 – an increase of 2.4% over the level noted at the opening of the season. China and the U.S. are the two markets expected to see the greatest increase in wheat stocks with China’s stock climbing by 8.8 million tons and U.S. stocks climbing by 1.4 million tons.

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