Grain price: Drop in wheat this week; production forecast up

This week saw wheat prices decline during the week across LIFFE and MATIF markets.

The publication of the United States Department of Agriculture’s (USDA’s) World Agricultural Supply and Demand Estimates (WASDE) report forecasts an increase in world wheat supplies for the 2020/2021 season by 5.7 million tonnes. This increase is expected to come from a 4.9 million tonne production increase and higher beginning stocks.

The outlook for coarse grain production for the 2020/2021 season is for an increase of 3.2 million tonnes. This will bring total production to 1,484.6 million tonnes.

Similarly, at a webinar held as part of the Cereals Event in the UK this week, Amy Reynolds of the International Grains Council (IGC) forecast global wheat production at record levels and projected world maize supplies record high.

USDA crop progress report

The USDA released its latest Crop Progress Report on June 8 and takes data from the week ending June 7.

The report showed that 97% of corn has been planted in the US. 89% had emerged and 60% of this corn is in good condition. 21% is in fair condition and 15% is in excellent condition.

86% of soybeans had been planted at the same time. 67% of soybeans had emerged and 60% of those soybeans are in good condition.

The winter wheat harvest is underway in a number of states including Texas, Arkansas and California.