The 2024/25 U.S. wheat outlook indicates tighter domestic supplies, with a notable reduction in production, alongside stable domestic use and exports. This decrease in supply stems from a drop in harvested area, offset only partially by improved yields.
Key Points,
U.S. wheat production is down by 26 million bushels to 1,982 million.
Global wheat supplies are projected to increase by 3.5 million tons to 1,060.6 million tons.
World trade in wheat is forecasted to grow by 2.0 million tons to 214.9 million tons.
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U.S. wheat production is projected to decline by 26 million bushels to 1,982 million, driven by a reduction in harvested area to 37.9 million acres. Despite this, the yield per acre has improved to 52.2 bushels, leading to slightly higher domestic use, particularly in food production. However, ending stocks are expected to fall by 28 million bushels, bringing them to 828 million bushels.
Globally, wheat supplies are expected to rise by 3.5 million tons to 1,060.6 million tons, largely due to increased production in Ukraine, Kazakhstan, and Australia, which offsets declines in the EU and the U.S. Higher beginning stocks in several countries, including the EU, also contribute to the global supply increase.
World wheat trade is projected to increase by 2.0 million tons to 214.9 million tons. This growth is primarily driven by higher exports from Australia and Ukraine, underscoring the strategic importance of these regions in the global wheat market.
The global wheat market is marked by contrasting regional trends, with robust production in certain countries counterbalancing lower outputs elsewhere. This dynamic, coupled with increased global consumption, highlights the importance of strategic trading partnerships and supply chain resilience.
Hedgify's platform empowers businesses to navigate this complex wheat market landscape by offering tools to lock in prices and secure supply chains, mitigating the risks associated with such volatility.
The information provided in this market insight is for general informational purposes and should not be considered financial advice. It is not intended to offer any financial recommendations or endorsements. Any decisions made based on the content are the sole responsibility of the reader.
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