News last update:6 Aug 2012

World wheat use reduced

World wheat use in 2008/09 is projected down 2.1 million tonnes this month to 653.9 million tonnes, according to US Department of Agriculture.

South Korea has been importing and using 0.5 million tonnes (mt) less wheat for animal feed than expected. It replaced wheat with manioc and corn distiller's dried grains.

The increase in world local marketing year exports is less than the increase in imports, reducing world wheat use.

Global ending stocks for 2008/09 are projected up slightly this month to 148.4 mt. The largest change in projected stocks is for Russia, down 1.0 mt to 7.1 mt.

Russia has been exporting at a fast pace in the first half of 2008/09, and even with government intervention buying wheat, export prospects were boosted and stocks prospects reduced this month.

Increased export prospects for Mexico's durum wheat has trimmed projected ending stocks by 0.2 mt this month. These declines are more than offset by increased stocks prospects for the EU-27, Saudi Arabia, Turkey, and the United States.

For the EU-27, increased imports more than offset a small reduction in production, boosting stocks.

Saudi Arabia has begun to import significant amounts of wheat, boosting stocks 0.4 mt, in anticipation that reduced production subsidies will trim future production.

For Turkey, increased production and imports more than offset increased exports, boosting prospects for ending stocks 0.3 million tons.

Full monthly report here from USDA

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