Soft Wheat

US wheat supplies are expected to increase by the end of 2013, in part because of weakened export demand, according to the latest Wheat Outlook from the USDA Economic Research Service. Global wheat production is also forecast to increase by 3.7 tons due to increases in China, Australia, and Canada. World ending stocks are predicted to be 2.8 million tons higher than previously estimated.

International export prices of wheat and maize remained stable but high in November , according to the latest GIEWS Global Food Price Monitor. International rice prices were somewhat mixed but generally lower than November 2011.

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.

The latest FAO Food Outlook finds that, on average, global food prices have been 8 percent lower during 2012 than they were in 2011. Global food import bills are forecast at USD 1.14 trillion, which is 10 percent lower than the record import bills seen in 2011.

The latest edition of the GIEWS Global Food Price Monitor reports that international cereals export prices remained stable in October. While wheat prices experienced some upward pressure due to trends in Australia and Ukraine, this was offset by favorable planting conditions for US winter wheat. Similarly, rice prices remained stable, falling only 1 percent from September. Maize prices also fell marginally based on slowing trade activity and progress of the US harvest.