Changes in the fundamentals of global food supply and demand have a great impact on food prices. On December 9, the US Department of Agriculture released the latest supply and demand report. The global production, consumption, and ending stocks of wheat, corn, and rice were all lowered, and the global soybean data was increased. Please see the latest data for details:
Global Wheat Production Down, Consumption Down, Ending Stocks Down
Production Reduction:
Global wheat production is lowered 2.08 million tons to 780.6 million mainly due to lower production in Argentina and Canada. Argentina's production is lowered 3 million tons to 12.5 million tons, the lowest since 2015/16, as a result of widespread drought and reduced harvested area and yields in Argentina.
Consumption Reduction:
Global wheat consumption is lowered 1.6 million tons to 789.5 million mainly due to lower feed and other use of wheat in the EU and Ukraine.
Stocks Reduction:
Global wheat ending stocks for 2022/23 are lowered 0.5 million tons to 267.3 million as lower stocks for Russia, Canada, Argentina, and Ukraine more than offset increases for the European Union and Australia.
The global supply has put pressure on the wheat market. CBOT wheat futures have fallen for ten consecutive weeks.
Global corn production down, consumption down, ending stocks down
Production Reduction:
Global corn production for 2022/23 is lowered by 6.52 million tons to 1,161.9 million tons. Among them, Ukraine is reduced by 4.5 million tons, Russia is reduced by 1 million tons, and EU corn production is also slightly lowered.
Consumption reduction:
Global corn consumption in 2022/23 is lowered by 4.75 million tons to 1.1706 billion tons, exceeding global production.
Inventory Reduction:
Global corn stocks are lowered to 300.7 million tons.
Source: http://www.cngrain.com/
