AMIS Market Monitor Sees Stabilizing Markets
Updated at 1354805146

The Agricultural Market Information System (AMIS) has released the latest edition of its monthly Market Monitor. This month's report sees stabilized world markets as forecasts for 2012-2013 crop outlooks become more finalized. Despite this stabilization, however, attention should be paid to ongoing weather concerns, particularly drought affecting US winter wheat.

Wheat production in 2012 fell below the record seen in 2011, and ending stocks are expected to decline significantly. Wheat use, on the other hand, is expected to drop based on lower feed use in China and the EU.

Maize production is also forecast to drop sharply from 2011 due to crop damage from the US drought, as well as lowered output from Russia and Ukraine. Maize use is also expected to decline based on lower industrial use, particularly US ethanol production.

Rice production is seen up in 2012 and stocks are expected to reach record levels. This increase is being driven by increased output in Indonesia, Mali, and Nigeria.

Soybean production is also expected to increase slightly, as better-than-expected yields in the US outweigh lowered production in South America. Soybean use is expected to increase only slightly, and ending stocks are expected to recover from recent low opening levels.